Attorney Rispoli said Bitcoin and XRP are the only large-cap tokens with legal clarity in the US, as the court ruled that Ethereum (ETH) has no protection as non-security.
In a recent tweet, prominent cryptocurrency lawyer Fred Rispoli said only Bitcoin and XRP are large-cap tokens with legal clarity in the United States.
Hodl Law v. SEC
The pro-XRP lawyer made this known recently while providing an update about Hodl Law PLLC’s lawsuit against the SEC.
In the lawsuit, Hodl Law asked the court to rule that engaging in transactional activities on the Ethereum network does not implicate securities laws.
In response, the SEC filed a motion in February 2023 to dismiss the lawsuit. On July 27, 2023, the court granted the regulatory agency’s motion to dismiss.
Attorney Rispoli Says ETH Has No Protection As Non-Security
Reacting to the development, Attorney Rispoli said that although the court granted the SEC’s motion to dismiss, it confirmed that ETH does not have any protection as a non-security.
BREAKING! The Court in our #ETHDec case granted @SECGov's motion to dismiss but at the same time confirmed there is no protection for #ETH as a non-security. At this point in time in the US, only #BTC and #XRP are large cap tokens that have legal clarity.https://t.co/60g6D9XhRW
— Fred Rispoli (@freddyriz) August 1, 2023
Consequently, the prominent crypto lawyer said BTC and XRP are the only large-cap tokens with legal clarity. In other words, XRP is the only altcoin with legal clarity in the United States.
Judge Torres Declares XRP Non-Security
It is worth noting that XRP recently received clarity from US District Judge Analisa Torres in the SEC v. Ripple lawsuit. As reported, Judge Torres ruled that XRP is not in and of itself a security.
Ripple Labs described the ruling as a resounding win for the company and the entire crypto industry. The blockchain company said the case has always been about getting clarity regarding the regulatory status of XRP.
While the SEC labeled XRP as a security, Ripple argued otherwise, thus prompting the judge to comment on the coin’s legal status.
Interestingly, the judge agreed with Ripple that XRP itself is not a security. The judge clarified that selling the coin as part of an investment contract does not automatically make it a security.
According to the Chamber of Digital Commerce, the ruling has established a legal precedent for the crypto industry. The crypto advocacy group said the verdict distinguishes between an investment contract and the underlying asset.