Crypto lawyer asserts compelling fact in Ripple lawsuit, lists XRP as cryptocurrency set to skyrocket
Pro-Ripple lawyer Jeremy Hogan explains why he believes Ripple did not market XRP as a security: most evidence suggests that XRP purchasers did not rely on Ripple’s efforts. Hogan posts a screenshot of one of Judge Torres’ judgments, which hints at how she can rightly conclude that XRP was not offered as a security.
She discusses whether the defendants offered to sell or sold XRP as a security in the lawsuit. According to the paper, the SEC claimed that the defendants offered XRP as an investment contract, a security specified under the Securities Act.
The Judge states that prong #3 of the test is that the purchasers must have sought profits “SOLELY” from the efforts of others.
That was the original test, although decisions since have softened that requirement and basically removed “solely” from the test.
— Jeremy Hogan (@attorneyjeremy1) April 14, 2023
Ripple defendants, on the other hand, say that because they did not sell XRP as an investment contract, no registration was required. The three prongs of the Howey test are listed in a statement that explains the investment contract’s “test”: “The Supreme Court held that the test for an investment contract under the Securities Act is whether the scheme involves 1. an investment of money. 2. in a common enterprise, 3. with profits to come solely from the efforts of others.” The SEC engaged expert witnesses to argue prong 3 of the Howey test.
On the other hand, the SEC’s expert “witness 1” evidence was overruled because he failed to justify the six considerations he mentioned that would have been essential to a reasonable purchaser of XRP. The judge also stated that he did not offer any references to support his way of evaluating XRP consumers’ perceptions or conduct.
Finally, during his deposition, the SEC expert admitted that he did not speak with any XRP purchasers when drafting his report. Only one SEC expert witness remains to testify on prong 3 of the Howey test, claiming that Ripple manipulated the XRP price. As proof for Prong 3, the SEC paraded a “cacophony” of numerous assertions made by Ripple, including marketing materials, tweets, and statements that a surge in the price of XRP represented “Ripplemania.”
According to Hogan, no proof exists that XRP buyers were influenced by this “cacophony” of comments. The test asks what XRP buyers thought or knew when they purchased XRP.
Ripple has witnesses who testify that XRP was publicly declared a currency and an asset, and thousands of XRP holders have filed an amicus brief. Ultimately, the SEC’s expert agreed that most of the XRP price volatility since 2018 had nothing to do with what Ripple produces. Hogan thinks Ripple should win the litigation given the SEC’s lack of evidence and the vast majority of evidence showing XRP customers did not rely on Ripple’s efforts.
XRP price prediction, will the lawsuit affect it?
Elsewhere, many people also expect XRP price not to be affected by the lawsuit but more affected by the market. According to famous trader Henrik Zeberg, XRP appears to be on track for exponential growth in the near future. Cryptocurrencies, as he acknowledges, are on the verge of going off significantly, as he mentions XRP.
#Crypto on the verge of taking off in a very big way!#Bitcoin #Ethereum #JASMY #XRP pic.twitter.com/9kkpNu0wXt
— Henrik Zeberg (@HenrikZeberg) April 14, 2023
The newest forecast comes when the cryptocurrency market is seeing more volatility, prices are turning green, and Bitcoin’s dominance is declining, with the cryptocurrency failing to surpass 49% again.
XRP/USD 4-hour chart | Source: TradingView
At the time of writing, Ripple’s native token is changing hands at $0.5129. Today’s launch of the business liquidity hub by Ripple Labs has added impetus to the already bullish XRP price, as AZCoin News reported. Over the last 30 days, the XRP price has risen by more than 40%.
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