Fred Rispoli’s recent apprehension regarding the legal status of XRP highlights the potential regulatory inconsistencies surrounding the cryptocurrency, suggesting that it may be considered a security in California while not in New York.
Although Judge Phyllis Hamilton dismissed several claims against Ripple in the Zakinov lawsuit, including accusations of securities law violations, the debate on whether XRP should be classified as a security remains unresolved.
Renowned legal expert Fred Rispoli has expressed significant concerns about the legal status of XRP, indicating the likelihood of the coin being labeled as a security in California but not in New York.
Rispoli shared his viewpoint following the recent ruling in the Zakinov civil securities lawsuit against Ripple. The lawsuit, which alleged that Ripple CEO Brad Garlinghouse violated securities laws during the 2017 XRP offering, received a summary judgment decision.
In her ruling, Judge Phyllis Hamilton dismissed four claims against Ripple, including the failure to register with the SEC, as reported by Crypto News Flash. However, she determined that a jury should decide whether Ripple’s offering and sale of XRP constitute a security.
Interestingly, Ripple’s legal team urged Judge Hamilton to adopt the same rationale as Judge Analisa Torres in the SEC lawsuit. Judge Torres had previously ruled that Ripple’s programmatic sales of XRP on digital exchanges did not meet the criteria to be classified as securities.
Contrary to Judge Torres’ reasoning, Judge Hamilton did not accept this stance, stating that the issue should be decided by a jury. This is not the first time a U.S. District Judge has disagreed with Judge Torres’ verdict, as seen in the SEC v. Terra lawsuit last year.
In light of these ongoing disputes, Attorney Rispoli stressed the importance of federal legislation to bring clarity and consistency to the regulatory status of cryptocurrencies like XRP across different states.
While Ripple’s Chief Legal Officer Stuart Alderoty maintains that Judge Torres’ reasoning remains valid, XRP’s price action continues to face resistance at $0.50. Currently, the XRP price is down 1.82%, trading at $0.4857 with a market cap of $27 billion.
In conclusion, federal legislation is seen as crucial to address the uncertainties surrounding the regulatory status of XRP and other crypto assets, aiming to provide clear guidelines for market participants and investors.