SEC Used to Call XRP Digital Currency, Has to Explain in Court Why It Backs Off Now: Lawyer Jeremy Hogan

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Tue, 04/06/2021 - 12:26
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Yuri Molchan
Partner at the law company Hogan and Hogan who has been following the case of the SEC against Ripple says the SEC has some important issue to explain to the court
SEC Used to Call XRP Digital Currency, Has to Explain in Court Why It Backs Off Now: Lawyer Jeremy Hogan
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Jeremy Hogan, partner at the Hogan & Hogan law firm, has taken to Twitter to say that, in 2016, the SEC referred to Ripple Labs in documents as a "digital currency company."

Now, the SEC will have to clarify to the judge how it has transformed into a "digital security" company.

"The SEC agreed with FinCen on XRP status"

The lawyer explains that the public document is dated 2016 and, back then, the U.S. securities regulator considered Ripple-affiliated XRP a digital currency, thus agreeing with the FinCen verdict made in 2015.

This argument about FinCen is the one that Ripple has been using actively against the SEC in court.

This explanation will be part of the documents that the lawyers on both sides will be discussing in court today, Hogan stated.

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The legal action was initiated by the SEC against Ripple back in December, and it insists that XRP is a digital security that has not been registered. The regulator accuses Ripple, CEO Garlinghouse and cofounder Christopher Larsen of selling these unregistered securities and making over $1 billion in profits.

Related
XRP Recaptures Top-4 Spot on CoinMarketCap, Inching Real Close to $1

XRP soars ahead of the hearing

As reported by U.Today earlier, XRP has soared to a three-year high of over $1 today. Over the past week, the coin has shown a 70 percent rise.

Today it surpassed the $1 level and moved back to fourth place on CoinMarketCap from seventh place.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.

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