XRP Lawsuit: Lawyer Says SEC’s Summary Judgement Unlikely To Be Granted

November 7, 2022 10:14 pm Comments

Lawyer Jeremy Hogan has recently commented on Twitter and provided his latest update on his thoughts on the current status of the lawsuit between the SEC and Ripple.

In the lawsuit, Judge Torres had denied Deaton’s motion to intervene, but she also allowed for the filing of amicus briefs.

As a result of allowing amicus briefs to be filed, Deaton had filed one himself for all the XRP investors that he represents.

Of those investors, more than 3000 took the opportunity to file an affidavit which will continue to help strengthen Ripple’s defense in the case.

Bitcoinist.com reports:

According to Hogan, the SEC will not be able to meet its burden of proof “on at least one element of the Howey test.”

This is where Deaton and the XRP investors who have made their voices heard in court and play a crucial role.

As Hogan went on to discuss, the SEC must do two things in order for the summary judgment motion to succeed. First, it must “prove every element by the greater weight of the evidence AND prove that there is no genuine dispute of a material fact”.

However, this factual argument is built on very shaky ground.

Specifically, the argument is that XRP investors bought into the token based on Ripple’s promise of a higher price.

Right now, many third parties have stepped in to provide their input in the case in order to support Ripple’s defense that XRP is not considered a security.

On the other hand, the SEC has not received any third party support and is only relying on a few statements that Ripple made and a small amount of buyers to make its case.

As a result, Deaton commented on the SEC’s reasoning and compares it to mere “speculation” from someone who has failed to understand the intentions of the XRP investors.

In fact, it seems as if the SEC never intended to understand XRP holders before making its case.

Bitcoinist concludes:

Ripple counters the SEC with its own expert witness correlating XRP price trends with market forces, especially since 2018. In addition, the company now has 3,000 affidavits from Deaton and XRP holders who did not buy XRP because of Ripple.

Hogan therefore concludes that the SEC has failed to meet its burden of proof over the past nearly two years.

A handful of statements over 8 years vs. expert opinions and 3k affidavits. BUT, even putting that aside, is there a genuine issue of material fact here? Ripple has submitted direct, hard evidence that a reasonable XRP purchaser was not relying on Ripple to increase price.

I don’t see how the Judge ignores that evidence and grants summary judgment on this prong of the test. Not saying the SEC can’t win – but it can’t win here.

In the 1-day-chart the XRP price is currently experiencing a signal for a trend change. The 100-day SMA line is crossing the 200-day SMA line from the bottom to the top, indicating the potential for a new uptrend.

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