- The SEC is exploring whether XRP should be classified as a commodity like Ethereum (ETH), rather than a security, in settlement talks with Ripple Labs, as reported by FOX Business’ Charles Gasparino, citing ETH’s post-ICO evolution as a key precedent.
- Ripple’s legal battle with the SEC nears a close, with negotiations refining a $125 million fine and institutional sale restrictions, influenced by shifts in SEC policy and a potential commodity reclassification for XRP, per Eleanor Terrett’s Wednesday report.
- Gasparino notes the SEC sees ETH as a “pure commodity” despite its ICO origins – mirroring XRP’s funding of Ripple’s platform – prompting discussions on whether XRP’s current utility and trading justify a similar commodity status to resolve the dispute.
The SEC’s ongoing settlement talks with Ripple Labs (XRP) have taken a pivotal turn, with the agency contemplating a reclassification of XRP as a commodity rather than a security, a development reported by FOX Business senior correspondent Charles Gasparino. Gasparino’s scoop, shared via an X post, reveals that the SEC is drawing parallels to Ethereum (ETH), which, despite launching as an ICO to fund its platform – much like XRP – has since been deemed a commodity due to its evolved trading and utility characteristics. This comparison is central to the discussions, as the SEC assesses whether XRP’s current market behavior and functionality align more closely with a commodity, potentially sparing it the security label that triggered Ripple’s legal woes while Ethereum escaped similar scrutiny.
FOX Business journalist Eleanor Terrett’s Wednesday report adds context, noting that the Ripple-SEC saga, long a thorn in the crypto industry’s side, is edging toward resolution, with negotiations focusing on refining a ruling that slapped Ripple with a $125 million fine and barred institutional XRP sales. Gasparino highlights the Ethereum precedent as a key lens: both cryptocurrencies financed platform development through initial offerings, yet ETH’s transformation into a “pure commodity” has set a benchmark the SEC is now weighing for XRP. Terrett underscores that recent shifts in SEC leadership and policy are influencing these talks, suggesting Ripple’s legal team is pushing to adapt the judgment’s terms to reflect a more favorable regulatory stance.
This potential pivot reflects the SEC’s struggle to reconcile its regulatory framework with the fluid nature of cryptocurrencies, where utility and market dynamics often blur traditional security definitions. The $125 million fine already marks a partial victory for Ripple, far below the billions initially sought, but reclassifying XRP as a commodity could reshape its future, easing restrictions and aligning it with Ethereum’s path—a move Gasparino flags as under serious consideration. It’s worth noting that the crypto landscape suggests XRP’s ledger-based payment protocol differs from Ethereum’s smart contract ecosystem, yet its persistent trading volume and enterprise use cases bolster the commodity argument. As the SEC navigates this Ethereum-inspired lens, the outcome could signal a broader shift in how the agency approaches digital assets, with Ripple’s fate hinging on whether XRP can convincingly mirror ETH’s commodity evolution.
Meanwhile, in a separate news, Ripple has received approval from the Dubai Financial Services Authority (DFSA) to offer regulated crypto payments and services within the Dubai International Finance Centre (DIFC). This approval makes Ripple the first blockchain-enabled payments provider to be licensed by the DFSA.
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