As the longstanding Ripple-SEC case seems to be gradually winding down, several supporters of Ripple and XRP, including popular legal experts like John Deaton and Jeremy Hogan, continue to drop their expectations on the impending Summary Judgment and final ruling of the XRP lawsuit.
In a brief Twitter thread, Attorney Jeremy Hogan, a partner at Hogan and Hogan, outlined why he thinks the Securities and Exchange Commission (SEC) won’t scale through in the XRP lawsuit against Ripple Labs and its top executives.
According to him, the SEC cannot win the case by depending on one element of the Howey test which is the ‘expectation of profits based on efforts of others’ prong.
In explaining this, the leading United States securities watchdog argues that Ripple, the crypto solutions company, is hugely involved in the price action of XRP. The SEC further implies that XRP holders invested, looking up to Ripple to impact the price of the digital token.
The legal expert stated that the SEC has been unable to prove Ripple’s involvement in the price of XRP, given that no genuine material facts have been issued to the court in this regard.
He wrote, “the SEC has absolutely failed to meet its greater weight of the evidence burden,” which justifies his assertion that the SEC cannot win Ripple banking on the ‘expectation of profits based on efforts of others’ prong of the Howey test.
It’s worth noting that Attorney Jeremy Hogan has not completely ruled out the SEC’s chances of winning. The Hogan and Hogan partner disclosed two things the SEC must do to be on the winning end of the XRP lawsuit.
He wrote, “in order to win at Summary Judgment, the SEC has to do two things: (1) Prove every element by the greater weight of the evidence AND (2) Prove that there is no genuine dispute of a material fact.”
Why the SEC cannot meet its burden on (at least) one element of the Howey test.
In order to win at Summary Judgment, the SEC has to do two things:
1. Prove every element by the greater weight of the evidence AND
2. Prove that there is no genuine dispute of a material fact. 1/ https://t.co/CzCFzCSahE
— Jeremy Hogan (@attorneyjeremy1) November 6, 2022
In another comment, he said, “Ripple has submitted direct, hard evidence that a reasonable XRP purchaser was not relying on Ripple to increase price. I don’t see how the Judge ignores that evidence and grants summary judgment on this prong of the test. Not saying the SEC can’t win – but it can’t win here.”