XRP Ruling Stands Strong on Appeal, According to Lawyer Jeremy Hogan
During a YouTube interview with Darren Moore Jr., pro-XRP lawyer Jeremy Hogan explained that Judge Analisa Torres' decision is likely to withstand any potential appeal.
According to Hogan, Judge Torres ruled in favor of Ripple by applying the Howey Test, which determines if transactions qualify as investment contracts under securities laws. She based her decision on the specific facts of the case. Hogan believes that an appellate court would be hesitant to overturn the factual determinations made by Judge Torres, making her ruling more likely to hold up against legal challenges.
Judge Torres’ approach was seen as smart by Hogan, as she grounded her opinion in the Howey Test. Specifically, she pointed out that purchasers in the programmatic sales of XRP did not know the sellers and Ripple itself was unaware of the buyers. This lack of expectation of profits was a crucial factor in her decision.
Hogan emphasized that appellate judges typically avoid delving deep into the factual details of a case and questioning the judge’s findings. Therefore, the likelihood of her ruling being overturned on appeal is diminished.
The SEC filed a lawsuit against Ripple in late 2020, alleging that XRP was sold as an unregistered security. In her recent ruling, Judge Torres determined that Ripple’s automated, open-market sales of XRP did not constitute securities transactions. However, she did rule in favor of the SEC concerning Ripple’s direct sales of XRP to institutional participants, considering them securities offerings.
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Hogan also stated that he believes the judge’s ruling offers legal protection to retail traders of XRP but not to holders of other digital assets. Specifically, Judge Torres explicitly stated that XRP is not considered a security in the secondary market.
This means that XRP holders won’t face arguments claiming XRP as a security within the context of this case. However, Hogan clarified that this ruling applies only to XRP and doesn’t extend to other digital assets. While persuasive in other cases, it is not legally binding for non-XRP assets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
