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HomeCrypto NewsMarketTop Lawyer Shares New Doc Proving XRP Isn't a Security "Outside Its Initial Contract"

Top Lawyer Shares New Doc Proving XRP Isn’t a Security “Outside Its Initial Contract”


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Attorney Hogan shares a new document proving that XRP does not maintain a security status outside the context of its initial contract.

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Attorney Jeremy Hogan, a partner at Hogan & Hogan law firm, recently shared a document proving that XRP does not maintain the status of a security outside the context of its initial contract. The document relates to the Supreme Court case between Mr. Pirani and Slack Technologies.

According to attorney Hogan, the Pirani vs. Slack case is analogous to XRP in the secondary market if the court finds that Ripple sold the coin as an investment contract.

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“XRP doesn’t magically maintain status as a security outside the context of the initial contract,” Hogan said.

Mr. Pirani alleged that Slack’s registration statement was misleading and inaccurate under Section 11 of the 1933 Securities Act.

According to the document shared by Hogan, Pirani argued that for many years, several courts have held that Section 11(a) liability extends only to shares that are traceable to an allegedly defective registration.

XRP Community Reacts

As expected, Hogan’s tweet stirred reactions from XRP community members. Some XRP enthusiasts asked Hogan to explain how the Pirani lawsuit will affect the SEC vs. Ripple case.

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Responding to the inquiry, Hogan said he expects Ripple to refer to the Pirani case in its brief on damages. Furthermore, attorney Hogan said Judge Analisa Torres could reference Pirani’s lawsuit if she comments on XRP secondary market sales.

Australian-based lawyer Bill Morgan joined other XRP community members in reacting to Hogan’s tweet. In a tweet today, Morgan said he wished he knew about the Pirani case during his debate with former SEC lawyer Marc Fagel regarding the legal status of XRP.

Debates Emerge as SEC Lawsuit Hits Final Stages

As reported by The Crypto Basic on Saturday, attorney Morgan argued that XRP has a utility that has nothing to do with investing. Morgan emphasized that Layer-1 (L1) blockchain crypto assets like XRP can be used to pay transaction fees, issued as airdrops, burned, and reward validators, among other use cases.

He made this known in reaction to Fagel’s comment that something needs to be a security for liability to be found. According to Fagel, an asset can be a security based on how it is offered and sold to investors.

Meanwhile, the multi-year legal battle between the SEC and Ripple is in its final stages, with a ruling expected to come at any moment. Interestingly, top crypto stakeholders like Cardano founder Charles Hoskinson expect the case to be resolved this month.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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