Ripple Lawsuit News: XRP’s Non-Security Status Settled, No More Appeals, Says Famous Attorney

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Jeremy Hogan, an esteemed lawyer with an avid interest in crypto, has reiterated his statement that the SEC legally cannot appeal the Judge’s ruling on XRP’s legal status as a token.

In a post on Twitter, Hogan pointed out a crucial takeaway from the judicial arena: the inherent nature of XRP does not qualify as an “investment contract” under the renowned Howey test. Therefore, he asserts, the judgment stands firm and is beyond the bounds of appeal.

While many revered Hogan’s perspective, some detractors emerged. A user on the platform contended that the SEC has the liberty to contest the foundational legality of tokens being securities. Hogan, undeterred, respectfully disagreed, highlighting that the SEC hasn’t shown interest in challenging the decision, rendering the debate perhaps moot.

Under the Lens: The Appeal’s Process

In a recent Twitter space, Hogan explained that the judiciary’s standpoint was lucid; while there was a recognized common enterprise between Ripple and institutional buyers, it did not necessarily encompass other XRP holders or the broader “XRP ecosystem.”

This viewpoint is paramount, especially considering the intricacy of establishing a common enterprise—a hurdle even more formidable than the third criterion of the Howey test.

Appeals in the legal industry aren’t straightforward, Hogan emphasized. To overrule a decision, the appellate court exclusively assesses evidence presented in the primary trial. New insights or witnesses don’t find a place in this evaluation. Only when original conclusions are glaringly flawed does the appellate court intervene.

Judge Analisa Torres’ verdict stated that a significant portion of XRP transactions didn’t breach investor-centric regulations. The main point of the SEC’s argument revolved around XRP’s classification as a security.

This delineation is a throwback to a three-tier test for investment-contract security, crafted by the Supreme Court in an age-old case involving the SEC and W.J. Howey Co.

Earlier, Hogan mentioned that the court’s interpretation isn’t set in stone, especially regarding “other distributions.” A tangible transfer isn’t requisite for a “sale” of securities.