Binance’s Legal Team Turns to Ripple’s Arguments
Binance seems to be capitalizing on the disclosure of the Hinmnan’s files at lightning speed and has already filed a brief using similar arguments. A partner at Florida-based Hogan and Hogan firm has discussed the matter.
Jeremy Hogan, a partner at Florida-based Hogan and Hogan firm, has commented on the release of Hinman’s emails, a controversial set of files used by the US Securities and Exchange Commission (SEC) to assess whether a digital asset is a security.
In his tweet, he noted that “we all got feelings about the Hinman emails today”.
At the same time, he added that Binance filed its brief today, adding “and look what argument it raises #1: the Ripple "an investment contract requires a contract," aka "blue sky law" defense! It's starting to spread.”
Jeremy Hogan’s tweet. Source: Hogan’s Twitter
He attached an excerpt from Binance’s filing.
It reads, “As a matter of law, the SEC cannot prevail on its claim because it has presented no evidence of a contract involving BNB, let alone an “investment contract” under the Securities Act.”
The authors of the brief then add that “in Howey, the Supreme Court explained that the meaning of the statutory term investment contract was “crystallized” by a series of state cases interpreting state “blue sky” laws. Howie, 328 US at 298. Every single blue sky case finding an investment contract had three essential ingredients.”
One of them, which is crucial to the case, is “the contract and post-sale obligations on the promoter to take specific actions for the investors benefit.”
Other Twitter users joined in. One of them who is a Crypto and startup lawyer at Lexproof pointed out that he noticed it too, and that he expects to see every Exchange Act token case raise it now.
Another one, who goes by the Twitter name of Digiknowassets added that the “legal brilliance” of Binance, Coinbase, and Ripple will essentially defeat the SEC’s counterparts. He added that “I'm all for regulations. I'm not for reckless enforcement actions.”
Meanwhile, a more critical user wrote: “The Hinman emails just confirmed what we all thought and frankly already knew. The SEC is corrupt & ETH got a free pass.
Previously, GNcrypto reported that Paradigm criticized the SEC.
