XRP Not a Security According to Hogan
Jeremy Hogan, a lawyer at the legal firm Hogan & Hogan, has recently declared in a series of tweets that the digital asset known as XRP, which is owned by Ripple, is not a security since it does not meet the criteria for what is known as a «investment contract.» Hogan contends that the United States Securities and Exchange Commission (SEC) has not shown that Ripple is in violation of either an implicit or explicit investment contract in its action against the company. This is despite the fact that XRP might be regarded a security according to the definition of an investment contract.
Hogan notes that the SEC contends that the purchase agreement is all that is necessary to demonstrate that XRP is a security; nevertheless, this argument differentiates the «investment» from the «contract.» Hogan adds that the SEC contends that the purchase agreement is all that is required to demonstrate that XRP is a security. According to Hogan, a simple purchase cannot be considered a «investment contract» since there is no duty for Ripple to do anything other than transfer the asset. This is because there is no further consideration involved in the transaction.
The Securities and Exchange Commission (SEC) initiated legal action against Ripple in December 2020, alleging that the company unlawfully marketed unregistered securities in the form of its XRP coin. Ripple has long contested this allegation, stating that the Howey test, which is used to assess whether or not a transaction qualifies as an investment contract, does not apply to XRP. This test is used to establish whether or not a transaction qualifies as an investment contract.
Hogan further contends that each of the «blue sky» instances, which the Howey case relied on for
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