While the outcome of the lengthy XRP legal case with the United States (US) Securities Exchange and Commission (SEC) remains uncertain, on April 9, a partner at the law firm of Hogan & Hogan and a lawyer turned to Twitter to dispute the SEC claims against Ripple.
This complaint was filed against the Ripple firm, which owns XRP, alleging that the corporation has been selling XRP tokens as “unregulated security.” But, according to lawyer Jeremy Hogan, XRP is far from a security.
In response to the SEC’s lawsuit against Ripple, Hogan argued that “XRP is not a security,” since “under the statutory definition of a security,” XRP can only be declared a security if it meets the definition of an investment contract.
Hogan also discussed the Howey test, a US Supreme Court ruling used to determine whether a transaction qualifies as an investment contract, which the Ripple company has now abandoned in response to the SEC’s argument that it offers an investment contract.
Hogan stated that the “blue sky” decisions relied on by the Howey case to define the “investment contract” all had a “contract” involving the “investment.” The lawyer stated at the end of the note that the “issue is NOT whether Ripple used money from the sale of XRP to fund its operations.”
Regardless of the pending SEC litigation, XRP has reached a 10-month high throughout the drama, rising by more than 30% in the last 30 days. However, since reaching a high of $0.57, XRP has experienced a regression, and it is currently down roughly 4% in the last week, with a trade price of $0.50 at the time of writing.
