The US Securities and Exchange Commission (SEC) is said to be considering whether XRP is eligible as a raw material instead of security in its current settlement negotiations with Ripple.
According to journalist Charles Gasparino, the sec weighs between XRP and Ethereum (ETH). The current administration of the agency reportedly regards Ethereum as a raw material despite the initial issue via an initial currency supply (ICO).
To sigh said:
“ETH was clearly published as an ICO; The characteristics of the issue were no different than XRP – both were used to finance the build out of a platform, but Ripple was sued and Ethereum was not because ETH had since turned into a raw material. What is now being discussed is the comparison between the 2 cryptos. “
The evaluation of the Handelsnuts committee and the market function of XRP can be crucial in determining the final conditions of its lawsuit against Ripple, which could lead to a possible settlement.
The SEC’s lawsuit against Ripple, submitted in December 2020, claimed that the company offers a non -registered effects due to the sale of XRP.
In August 2023, however, the American district judge Analisa Torres gave a crucial statement that distinguished itself between the institutional and retail trade in Ripple. The court has established that although the institutional sale of XRP investment contracts formed and thus the securities laws, the sale of secondary market to retail investors did not qualify as non -registered securities supply.
As a result, the ruling imposed a fine of $ 125 million on Ripple and gave a permanent order that limits the institutional sale of XRP.
Potential arrangement
Recent reports suggest that the case is in Latest phases of resolutionWith discussions aimed at securing terms that reflect the evolving regulations perspectives on crypto.
Ripple’s legal team is said to insist on reduced fines and claims that an implicit recognition of misconduct conflicts with the shifting attitude of the SEC with regard to the enforcement of the crypto.
The company argues that if the SEC reconsider the legal classification of digital assets, the settlement conditions must adjust to this evolving framework.
Lawyer James Murphy, known as Metalawman, suggested that the SEC would have accepted a settlement to appeal and collect the fine of $ 125 million ‘in a heartbeat’.
However, this outcome may not be favorable for Ripple, especially if the company is planning to pursue a future exempt supply supply or a first public offer.
The deliberations of the SEC about the XRP classification reflect broader uncertainties in Crypto Regulation. If the XRP agency recognizes as a merchandise, it can be a precedent for other crypto -facing regulatory supervision, such as Solana (SOL) and Cardano (ADA).