• Pro-XRP attorney Jeremy Hogan says the ruling in SEC’s lawsuit against Ripple is unlikely to be overturned on appeal.
• Judge Analisa Torres made her opinion based on the Howey Test, which determines whether certain transactions qualify as investment contracts.
• Judge Torres ruled that Ripple’s automated, open-market sales of XRP are not securities transactions but their direct sales to institutional participants represented a securities offering.
Favorable Ruling for Ripple
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple late last year due to their alleged sale of unregistered security XRP. Last week, Judge Analisa Torres ruled in favor of Ripple stating that their automated open market sales of XRP are not securities transactions.
Howey Test
Judge Torres based her decision on the Howey Test which examines whether certain transactions qualify as investment contracts and are subject to securities laws. This test concluded that there was no expectation of profits from purchasers who did not know who they were buying from or from Ripple who also did not know who was buying XRP.
Jeremy Hogan’s Opinion
Pro-XRP attorney Jeremy Hogan believes that this ruling will likely withstand an appeal because appellate courts do not like to dig into the facts of the case and say that the trier of fact was incorrect. He also states that this legally protects retail traders of XRP but does not apply to any other digital asset than XRP itself.
Protection For Retail Traders
Hogan further explains how this ruling legally protects retail traders of XRP but does not apply to any other digital asset than XRP itself. He states explicitly that Judge Torres’ order only applies to XRP and is persuasive authority for cases concerning non-XRP digital assets but is not binding on anyone.
Conclusion
In conclusion, pro-XRP lawyer Jeremy Hogan believes that Judge Analisa Torre’s ruling in favor of Ripple is less likely to be overturned on appeal due its factual determinations in accordance with the Howey Test and it provides legal protection for retail traders trading in only XRP tokens and does not apply to any other digital asset than XRPs themselves.