Ripple Lawsuit News: SEC to Decide if XRP Deserves Same Treatment as Ethereum
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The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is close to an end, with a settlement potentially coming soon, according to sources shared with Fox Business’ Eleanor Terrett. Ripple’s legal team is currently negotiating for better terms after a court ruling in August 2023. The ruling imposed a $125 million fine on Ripple and stopped the company from selling XRP to institutional investors.
The delay in the settlement is because Ripple wants to change the terms of the court decision. Reports suggest that Ripple’s team is arguing that if the SEC is easing up on other crypto companies, Ripple should not still face penalties. Ripple believes that accepting the current terms would make them admit wrongdoing, but the SEC is now unsure if any wrongdoing actually happened.
Charles Gasparino, reacting to the situation, added that one key issue the SEC is considering is whether XRP should be treated like Ethereum. Both XRP and Ethereum were sold through Initial Coin Offerings (ICOs) to raise funds for their platforms. But while Ripple got sued over XRP, Ethereum wasn’t, because it became a commodity. The SEC is now debating whether XRP should also be considered a commodity like Ethereum.
“ What is being discussed now is the comparison between the 2 cryptos. The SEC believes ETH trades as pure commodity. They are trying to determine if the commission can make that case w $XRP,” Gasparino wrote.
Pro-XRP lawyer John Deaton suggested that the SEC consider a few important points before making a final decision:
- A 2018 article by Giancarlo (former Chairman of the Commodity Futures Trading Commission) argued that XRP is not a security.
- A 2018 SEC analysis didn’t label XRP as a security or suggest enforcement actions against Ripple.
- Former SEC Commissioner Joe Grundfest questioned in a 2020 letter why XRP is being treated differently from Ethereum.
