A partner at And Hogan Law firm shared a document that proves that XRP is not security outside the context of its initial contract.
The document relates to the case in the supreme court between Mr. Pirani and Slack Technologies.
This U.S. Supreme Court case just came out last week. Slack v. Pirani
The case is analogous to XRP in the secondary market if/where the XRP was sold as an "investment contract."
XRP doesn't magically maintain status as a "security" outside the context of the initial "contract." pic.twitter.com/XfHiFoATDs
— Jeremy Hogan (@attorneyjeremy1) June 5, 2023
As stated by Attorney Hogan, the Pirani vs. Slack case is very similar to XRP if the court revealed that Ripple sold the coin as an investment contract.
According to Hogan, “XRP doesn’t magically maintain status as a security outside the context of the initial contract”
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Mr. Pirani alleged that Slack’s registration document was not accurate as it was misleading, as stated under Section 11 of the 1933 Security Act.
As stated in the document exposed by Hogan, Pirani asserts that for a long time, the court has held on to section 11(a) liability extends only to shares that can be traced to an allegedly defective registration.
Reactions Of XRP Community
Hogan’s speech was able to stare up reactions from the community members in XRP, just as was expected. This leads some of the investors to ask Hogan to explain how the Pirani lawsuit will affect SEC vs. Ripple case.
As responded by Hogan. He said that Ripple is expected to refer to the Pirani case in their brief on the damage.
Speaking further Hogan Added that the presiding Judge in the case Analisa Torres may reference the Pirani’s Lawsuit if she is going to speak about XRP’s secondary market sale.
I'd expect to see this case in a Ripple brief on damages (if necessary).
Or maybe in the Judge's Order if she addresses secondary sales.
— Jeremy Hogan (@attorneyjeremy1) June 5, 2023
Bill Morgan, an Australian Based legal Practitioner, joins the conversation as he also reacts to Hogan’s tweet.
In Morgan’s tweet today, he expressed that he wished he had been aware of the case by Pirani before his debate with the former SEC lawyer Marc Fagel regarding the legal status of XRP.
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SEC Lawsuit Hits Final Stage Debates Are Emerging.
Attorney Morgan as reported on Saturday argued that XRP owns a utility that has nothing to do with investing.
He (Morgan) emphasizes that Layer-1 (L1) blockchain Crypto assets Like XRP have the potential of being used for transaction fees in the crypto space, to be issued as airdrops, and burned among other uses.
This was a response to Fagel’s assertion that something has to be secure before liability can be traced to it. As stated by Fagel, an asset can only be a security based on how it is offered and sold out to investors in the community.
Note that the battle between SEC and Ripple which is considered the toughest digital battle is heading to an end, as announced by Ripple’s CEO Garlinghouse that the ruling is expected to hold in July.