With the U.S. Securities and Exchange Commission (SEC) ruling on the Ripple lawsuit now pending, attorney Jeremy Hogan took to Twitter to make a convincing argument as to why XRP does not qualify as a cryptocurrency stock.
In a series of tweets, Hogan explained that XRP can only meet the definition of an “investment contract” under securities law definitions. XRP is not a stock or a bond, and even the SEC admits that XRP can only be considered an “investment contract.”
With this in mind, Hogan goes on to assert that the “investment contract” analysis is subject to the “Howey” suit and its version. The “test” in the case (investing in a joint venture with the expectation of profiting from the efforts of others) was a response to the lower court’s opinion that “speculative” investment was necessary.
He highlighted an important fact: Howey did not focus on the “contract” part of the “investment contract.” Instead, the “contract” was found necessary in the response to the lower court and resolved the “contract” portion of the test shortly before the Howey opinion was issued. While these technically appear to be legal, the question, according to Hogan, is whether the SEC can prove that there is an implicit or explicit “complaint” between Ripple and XRP buyers regarding “investment” “theirs or not.” contract”.
no have contract
The simple basis of Hogan’s argument is that the SEC failed to argue whether there was an implicit or explicit investment contract. Instead, they offer an argument that separates “investment” from “contract”. The SEC argued that the sale agreement was all that was needed, and that’s all it proved. A simple purchase, nothing more, cannot be an “investment contract”.
It’s still just an investment, like buying an ounce of gold, and Ripple is under no obligation to do anything other than transfer the asset. As far as Ripple is concerned, there is no such contract, so XRP cannot be classified as a security, he added.
Hogan concluded that the name “securities” did not protect potential investors from making poor decisions. Securities laws only require suppliers to disclose certain information about contracts with buyers.
XRP Consolidates at $0.50, Another Bullish Coming?
Ripple price is consolidating after trying to reclaim the key resistance area of ​​$0.55, which was rejected. However, it faces an important support area, and its impending actions will determine Ripple’s short-term outlook.
daily chart
Following a sudden price increase, Ripple’s cryptocurrency managed to overcome several important hurdles, creating a positive outlook for the future. However, the upward momentum slowed after hitting the significant resistance area of ​​$0.55, triggering a slight decline.
While this downtrend could be considered a short-term correction until XRP continues to break above the aforementioned resistance zone, attention should be paid to the range between $0.47 and $0.4436 (Fibonacci retracement level). , 5 and 0.618) play an important role in supporting the price if there is a sudden drop.
Source: TradingView
4 hour chart
As shown, the XRP price suddenly rose, broke out of the descending channel, and experienced a short-term pullback, forming a symmetrical triangle pattern.
Since then, XRP has broken out of the upper border of the triangle with a strong uptrend, continuing its uptrend. However, the rally ended when it reached the key resistance area of ​​$0.55, leading to another corrective phase and the formation of a descending flag.
All in all, if the price manages to break out of the flag and confirm the $0.55 resistance level, it could lead to a major surge. However, if rejected, the small $0.48 area will act as a key support on the 4-hour time frame.
Source: TradingView
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Ming Ying
According to Kyptos
