Attorney Disputes XRP's Security Classification!
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Attorney Disputes XRP's Security Classification!

written by John Murphy | April 11, 2023

Jeremy Hogan, a lawyer, and legal expert have been closely following the legal battle between Ripple Labs and the Securities and Exchange Commission (SEC). According to Jeremy Hogan, the SEC has failed to demonstrate why XRP’s Security Classification, developed by Ripple Labs, is secure.

Key Takeaways:

  • Lawyer Jeremy Hogan says XRP is not a security due to it not meeting the definition of an “investment contract.”
  • XRP holders could face fines for breaches if it’s classified as security.
  • If XRP is not a security, Ripple Labs did not conduct an unregistered security offering, potentially ending the legal battle with the SEC.
  • The legal classification of XRP is still being debated in court.
  • If XRP is classified as a security, it could limit its acceptance and use.

A partner at the law firm Hogan and Hogan named Jeremy Hogan says that Ripple’s XRP (XRP) is not a security because it does not fit the definition of an “investment contract,”.

Katelyn Dibbert makes an announcement on his Twitter that a lawyer explains why XRP is not a security by highlighting that it doesn’t meet the definition of an “investment contract.”

If XRP is a security, holders who exchange XRP would be regulated by the same rules as stock dealers, including the potential for fines for breaches.

If XRP is not a security, it would mean that Ripple Labs, the company that created XRP, did not conduct an unregistered security offering when it initially sold the cryptocurrency.

This would effectively end the ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC).

According to a lawyer who has been following the SEC’s case against Ripple, XRP cannot be considered a security because it does not fit the definition of an “investment contract,” which is the only legislative definition that it could “possibly” fit.

Source: fxempire

Here is an updated XRP News that, the ongoing legal battle between Ripple Labs and the SEC continues. Ripple Labs has filed a motion to dismiss the SEC’s lawsuit against them, arguing that XRP is not a security and therefore not subject to SEC regulation. The case is currently awaiting a decision from the court.

Is XRP a security or commodity? The legal classification of XRP is currently a matter of debate and has not been definitively determined.

The Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs, the company that created XRP, alleging that XRP is a security and that Ripple Labs conducted an unregistered security offering when it initially sold the cryptocurrency.

Is XRP a currency? The cryptocurrency token utilized by Ripple is named XRP. XRP is used to send money securely and quickly across borders at a lower rate.

Being a bridge currency, its main function is to provide financial institutions with a more affordable means to swap both fiat and cryptocurrencies.

On March 20, Judge John Deaton said that he anticipated that Bill Hinman’s controversial remarks, which seemed to indicate that cryptocurrencies were not securities, would be made public since they also had an effect on other legal issues. This is the recent update on the XRP lawsuit.

If XRP wins the lawsuit then the regulatory body has the power to punish Ripple Labs and order the company to register XRP as a security, among other things. So, this decision would undoubtedly cause XRP to be viewed similarly to traditional securities, which might limit both its acceptance and use.