Pro-XRP Attorney Asserts Ripple’s SEC Lawsuit Partial Victory to Remain, Despite Possible Regulatory Appeal Success

According to Pro-XRP Lawyer Jeremy Hogan, in the event of a potential appeal success by the U.S. Securities and Exchange Commission (SEC) in the Ripple case, it's probable that the initial partial victory secured by the payments company will endure.

Jeremy Hogan, an attorney supporting the Pro-XRP stance, highlights insights derived from a recent SEC court filing. According to Hogan, the potential appeal by the regulatory body in the ongoing Ripple case specifically revolves around the question of whether Ripple's sales on exchanges comply with securities regulations.

Hogan elaborates, stating, "Furthermore, the SEC's decisions have raised concerns, evidenced by their pursuit of an interlocutory appeal. Importantly, this appeal does not concern the classification of XRP as a security itself, but centers on the aspect of its sales, particularly those related to programmatic and individual sales."

In his analysis, Hogan envisions a scenario wherein a successful SEC appeal would not lead to the delisting of XRP on crypto exchanges. Instead, these exchanges could continue trading the token under the condition that Ripple's involvement in asset sales is absent.

Clarifying the two distinct concerns at play, Hogan emphasizes that XRP fundamentally is not a security. However, if the SEC secures an appeal victory on sales, Ripple would be precluded from utilizing exchanges to facilitate asset transactions.

Hogan raises an important question: Would exchanges retain XRP listings? He posits that they likely would, as long as they can validate that Ripple is not involved in the sales process.

Hogan clarifies that the SEC's appeal targets exclusively XRP sold on exchanges by Ripple and its founders. He differentiates the sales context, pointing out that if the SEC prevails regarding programmatic sales, those transactions should have been registered. Yet, it does not alter the inherent nature of XRP owned by individuals.

Importantly, Hogan anticipates that if the judge grants the SEC's appeal, Ripple will in turn appeal the issues it lost during the process.

The SEC initiated legal action against Ripple in late 2020, alleging that the company illicitly marketed XRP as an unregistered security. Judge Analisa Torres rendered a verdict in July, determining that Ripple's automated, open-market sales of XRP do not constitute securities transactions. However, the judge aligned with the SEC in deeming Ripple's direct sales of XRP to institutional participants as falling within the scope of securities offerings.

Aug 12, 2023