The attorney argues that XRP is not a security

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US Securities and Exchange Commission has not provided sufficient legal evidence to establish that XRP is a security, according to attorney Jeremy Hogan.

According to Jeremy Hogan, a partner at the legal firm Hogan & Hogan, Ripple’s XRP is not a security since it does not meet the criteria of an “investment contract,” the “only” regulatory term that it might “possibly” meet.

Hogan sent a series of tweets on April 9 outlining his reasoning for classifying XRP as an- “investment contract” rather than a stock or bond, as it was the only description of security that seemed to match.

However, Hogan claims the SEC has failed to prove an implicit or explicit investment contract in its case against Ripple.

In December of 2020, the SEC filed a complaint against Ripple, saying that the company had offered XRP tokens as unregistered securities.

Ripple has consistently denied the accusation, maintaining that the transaction does not meet the Howey test, a legal standard used to establish whether or not a certain transaction constitutes an investment contract. In the 1946 case SEC v. W.J., the Supreme Court of the United States formally established it.

Hogan further contends that the Howey case’s reliance on “blue sky” decisions to define an “investment contract” is flawed since all of those instances featured contracts of some kind.

When asked how someone could “reasonably rely” on an offeror to earn them money without any remedy when the offeror didn’t deliver, he said, “They can’t.”

According to Hogan, the fundamental question is not whether or if Ripple utilized XRP proceeds to finance its business operations, but rather whether or not the SEC has shown that an implicit or explicit “contract” existed between Ripple and XRP customers over their “investment.” “There was no such contract,” Hogan said.

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