Prominent pro-Ripple lawyer Jeremy Hogan has stressed the significance of addressing the contentious issue of “secondary market sales” of XRP in the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC).
On Monday, Hogan also highlighted the significance of resolving the question of whether XRP is inherently classified as a security, as both of these issues directly influence XRP’s potential relisting on exchanges and the overall outcome of the case.
“There has been discussion about how/if “secondary market sales” of XRP will (or won’t) be addressed in the Ripple case. It’s important because we are only confident XRP will be relisted on exchanges if the issue of whether XRP is inherently a security is addressed,” Hogan tweeted.
Notably, Hogan acknowledged the likelihood that the judge overseeing the case might not directly address the issue of securities stating the plaintiff did not explicitly raise it. However, he outlined scenarios that could address secondary sales concerns and influence the judge’s decision.
Firstly, the legal pundit proposed that Ripple could agree with the SEC to include language in the proposed final judgment, explicitly excluding secondary sales from its scope. According to him, this approach could clarify the treatment of secondary sales just like the precedent set by KIK Interactive’s case, where the SEC allowed language pertaining to continuing sales.
Secondly, the lawyer suggested that the judge consider the concerns raised by various amici, including those championed by XRP holders represented by attorney Deaton. In late March, attorney John Deaton predicted an “outright win” for Ripple while accusing the agency of significant overreach in the case. At the time, Deaton also expressed optimism in Judge Analisa Torres’ ruling that “XRP is not a security and ongoing and secondary sales are not securities.” He further emphasized that the judge recognized the importance of the public interest in reaching a decision, terming the amicus briefs and over 3500 affidavits filed by XRP holders as a “big deal”.
According to Hogan, Ripple could also benefit from the precedent set in the LBRY case, where the judge ruled earlier this year that Secondary sales are not securities, raising optimism that the judge in the XRP lawsuit may do the same.
That said, as the high-stakes lawsuit continues, the crypto community anxiously anticipates updates on secondary market sales, as a favourable ruling could potentially aid in XRP’s relisting on exchanges once the case concludes. This could have significant implications for cryptocurrency, potentially boosting its price to all-time highs after three rough years.