SEC Reportedly Continuously Weighing Its Case Against Ripple, Comparing XRP to ETH's Commodity Status

On Thursday, journalist Charles Gasparino followed up on Eleanor Terrett's report Wednesday that the SEC may soon reach an agreement with Ripple to end the lawsuit

The U.S. Securities and Exchange Commission (SEC) is reportedly continuously weighing its case against fintech firm Ripple, and among the main topics of discussion are whether the XRP token can be proven as more of a commodity than a security.

A previous ruling by a judge designated the XRP Ledger's native cryptocurrency as a non-security when offered on exchanges, but the question remains on whether institutional sales constitute a security transaction or not.

Discussing $XRP and $ETH Status A Pressing Point In Case: Report

On Thursday, journalist Charles Gasparino followed up on Eleanor Terrett's report Wednesday that the SEC may soon reach an agreement with Ripple to end the lawsuit filed late in 2020.

One of the pressing points of the ongoing settlement negotiations is on the XRP coin's legal status, as per Gasparino, and Ethereum, the world's second-largest crypto asset, is reportedly being used as an example.

"ETH was obviously issued as an ICO (initial coin offering); its characteristics on issuance was no different than XRP—both used to fund the buildout of a platform," he wrote.

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… pic.twitter.com/GBuhWqP90E

— Charles Gasparino (@CharlesGasparino) August 31, 2023

While the two major altcoins had similar issuance structures, Ripple was sued by the SEC and Ethereum was not "because ETH had since morphed into a commodity," he noted.

At this point, the SEC is in discussion with Ripple, the XRP token's largest known corporate holder, to determine whether XRP has also evolved into a commodity as ETH has, he added.

$XRP Holders Blast Gasparino Over 'Scoop'

As soon as Gasparino's post started spreading on X, the XRP Army, long-time holders of the XRP token, took to the comments section to criticize the journalist for seemingly insisting that XRP is a security.

"I can almost guarantee this is not a 'scoop.' Rather it's Charlie trying to push his narrative (anti-XRP, anti-Torres ruling, Ethgate denying, etc.)," one user said.

Rachel, another XRP holder, said Gasparino should "stay out of crypto" as he is not good at covering the industry.

Another XRP holder said there shouldn't be any comparison between XRP and ETH since the XRP Ledger "was not built on the sales of XRP" and Ripple "did not create XRP to use as a funding mechanism" to develop the ledger.

The post REPORTER: SEC Still Discussing Whether XRP Is a Commodity or Security in Ripple Case appeared first on OpenChain.io.

As the U.S. Securities and Exchange Commission (SEC) continues to grapple with the classification of cryptocurrencies, particularly in the case against Ripple, reports suggest that the commission is pivoting in its approach.

Earlier this week, a report by Bloomberg indicated that the SEC may be open to settling the lawsuit with Ripple, which could pave the way for a broader shift in the regulator's stance on cryptocurrencies.

The report, which cites sources familiar with the matter, suggests that the SEC is willing to consider the role of utility and the changing market conditions in its evaluation of digital assets.

This shift in strategy follows a previous ruling by a judge, who designated the XRP Ledger's native cryptocurrency as a non-security when sold on exchanges but left the question open on whether institutional sales constitute a security transaction or not.

The report further notes that discussions are centering around comparing the characteristics of XRP to Ethereum.

While both major altcoins had similar issuance structures, Ripple was sued by the SEC and Ethereum was not because, according to the report, ETH had since become a commodity.

At this point, the SEC is in discussion with Ripple to determine whether XRP has also evolved into a commodity like ETH.

This development carries significant implications for the broader crypto market, as a broader shift by the SEC could have far-reaching consequences for the industry.

However, it's important to note that no official statements have been made by the SEC regarding a settlement with Ripple or any changes in its regulatory approach to cryptocurrencies.

Despite the reports and speculations, the final decision on the case and the status of XRP will rest with the court and the regulator. Nonetheless, this news has sparked reactions among members of the XRP community on X.

"Can someone please tell Charles to stay out of crypto. He's not good at it and it shows. There shouldn't be any comparison between XRP and ETH as they have fundamentally different structures and purposes. Don't compare apples and oranges, Charlie!" one user wrote in response