Ripple Lawsuit News: Hogan Slams Amicus Brief for Misinterpreting Court Ruling

The ongoing Ripple lawsuit gained fresh momentum with a new twist as Better Markets filed an amicus brief urging the Second Circuit to overturn the 2023 ruling. The nonprofit claimed that the original decision misapplied the Howey Test, potentially weakening investor protections and creating loopholes in securities regulation.

This legal action arrives amidst XRP’s impressive surge in value, raising questions about its future trajectory.

Ripple Lawsuit Better Markets Challenges Ruling

The Ripple lawsuit revolves around the SEC’s claims that XRP qualifies as a security, but the 2023 decision partially favored Ripple. Judge Analisa Torres determined that XRP was only considered a security when sold to institutional investors.

This distinction helped Ripple secure a partial victory, which has since fueled optimism in the crypto community. However, Better Markets argues that the ruling failed to protect retail investors, asserting that XRP sales on exchanges still meet the criteria of securities under the Howey Test.

The brief also warns that the decision could create regulatory gaps, leaving everyday investors vulnerable while giving institutional buyers an advantage. These concerns aim to strengthen the SEC’s appeal against Ripple.

Pro-crypto attorney Jeremy Hogan criticized the amicus brief, highlighting critical misunderstandings of the trial court’s findings. He argued that the judge did not determine that XRP sales on exchanges were exempt from securities law due to direct buyer-seller relationships.

Instead, Hogan emphasized that the decision was based on the nature of “blind bid/ask transactions” on exchanges. According to Hogan, Ripple’s programmatic buyers could not know if their payments went to Ripple or other XRP sellers.

This lack of reliance on Ripple to boost prices became a key factor in the court’s reasoning. He further noted that the brief failed to address this fundamental issue, undermining its arguments for overturning the decision.

Ripple’s Momentum and the SEC Appeal

While the Ripple lawsuit remains a focal point in crypto, XRP has experienced remarkable growth, surging over 115% in just two months. This surge follows broader market optimism and changes in the SEC’s leadership, including Gary Gensler’s resignation.

However, Better Markets’ new filing could dampen this momentum by reigniting uncertainties surrounding XRP’s legal status. The nonprofit’s claims that Ripple’s promotional activities created profit expectations will likely fuel further debate.

With the Ripple lawsuit now at a critical juncture, the SEC’s ability to protect retail investors and regulate crypto sales remains under the spotlight. Both sides continue to dig in their heels, making the case pivotal for the future of crypto regulations.

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