• The US SEC’s opening brief in the XRP lawsuit makes no sense, said lawyer Jeremy Hogan.
• Hogan described the brief as “lackluster” with a majority of it explaining a previous ruling.
• The SEC has failed to give “any reasonable evidence” to support its claims.

The United States Securities and Exchange Commission (SEC) filed its opening brief in the XRP lawsuit on Wednesday, sparking discussions across the crypto community. Meanwhile, XRP soared to a seven-year high of $3.10, gaining significant attention.

Jeremy Hogan, a partner at Hogan & Hogan, criticized the SEC’s brief, calling it “lackluster” and suggesting that even the brief’s author seemed aware of the weak arguments. Hogan highlighted that the SEC’s appeal focuses solely on Judge Analisa Torres’ ruling that XRP, when sold to retail investors, is not a security.

Related: Ripple-SEC Appeals Heat Up as Deadline Looms for Opening Brief

SEC’s Argument Lacks Supporting Evidence

Hogan noted that nearly half of the SEC’s brief merely reiterates the trial court’s ruling, adding little substance to its appeal. The SEC argues that it does not need to prove that XRP retail investors were aware of Ripple’s statements regarding price growth. However, Hogan countered that this claim conflicts with established legal standards. In an X (formerly Twitter) post, Hogan explained:

“Further, not needing to show “reliance” (which is what it argues) is a completely different thing than not needing to even show “knowledge.””

Hogan expressed surprise at the SEC’s failure to provide any credible evidence that retail buyers knew of Ripple’s alleged “promises” to boost XRP’s value. John Deaton, an attorney who represented XRP holders during the case, submitted thousands of affidavits proving that no such promises were made. The SEC has yet to adequately address this argument.

Hogan predicted that the court is likely to uphold Torres’ ruling, forcing the SEC to demonstrate “knowledge of promotional statements.” This process would be both expensive and time-consuming, potentially weakening the agency’s overall case.

Political Pressure on the SEC Leadership

Hogan suggested that political factors may influence the SEC’s stance. He noted that Gary Gensler, the agency’s chair, and the two Democratic SEC commissioners backing the brief are likely preparing for changes as Donald Trump’s administration, viewed as crypto-friendly, begins in four days.

Hogan added that the SEC’s approach may be part of an effort to delay proceedings, although this strategy could result in unfavorable rulings that set a broader precedent.