The long-running legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) is nearing its conclusion, with reports suggesting a settlement could be reached soon. According to Fox Business journalist Eleanor Terrett, Ripple’s legal team is actively negotiating for better terms following an August 2023 court ruling that imposed a $125 million fine and restricted XRP sales to institutional investors.
However, the settlement has been delayed as Ripple challenges the ruling’s terms, arguing that if the SEC is softening its stance on other crypto companies, XRP should not face disproportionate penalties.
SEC Debates XRP’s Classification: Security or Commodity?
A key factor in the negotiations is whether XRP should receive the same regulatory treatment as Ethereum (ETH). Notably, while both cryptocurrencies were distributed through Initial Coin Offerings (ICOs), Ethereum was later classified as a commodity rather than a security—unlike XRP, which became the center of a legal battle.
Veteran journalist Charles Gasparino noted that the SEC is now reassessing XRP’s classification, questioning whether it should be treated as a commodity, just like Ethereum.
Gasparino wrote:
“The SEC believes ETH trades as a pure commodity. They are trying to determine if the commission can make that case with XRP.”
SCOOP: Off of @EleanorTerrett‘s scoop from yesterday on the @Ripple – @SECGov settlement negotiations, one issue that is being weighed by the commission is whether $XRP continues to trade and have a utility that makes it more a commodity and not a security. I am told the…
— Charles Gasparino (@CGasparino) March 13, 2025
Pro-XRP Lawyers Push Back Against SEC’s Stance
Pro-XRP lawyer John Deaton has urged the SEC to consider historical precedents before making a final decision, highlighting several key arguments:
- In 2018, former Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo argued that XRP is not a security.
- An SEC analysis in 2018 did not classify XRP as a security or recommend enforcement actions.
- Former SEC Commissioner Joe Grundfest questioned in a 2020 letter why XRP was targeted while Ethereum was not.
These points strengthen Ripple’s case that XRP should not be treated differently from Ethereum, potentially giving the company leverage in its settlement negotiations.
What’s Next for Ripple and XRP?
The SEC’s final decision on XRP’s classification will have significant implications for the crypto market. If the SEC softens its stance, it could pave the way for:
- A more favorable settlement for Ripple
- XRP being officially recognized as a commodity
- A potential surge in XRP’s price due to renewed investor confidence
Conversely, if the SEC refuses to alter its stance, Ripple may have to accept penalties or continue its legal battle. The next few weeks will be crucial in determining XRP’s regulatory future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your own research before making any investment decisions.
Note: This article has been refined and enhanced by ChatGPT.
