XRP and Ethereum Status In View as Ripple SEC Lawsuit Settlement Progresses
Highlights
- Ripple and SEC lawsuit settlement talks is progressing
- XRP status as a commodity like Ethereum is one final detail being worked out by Ripple and SEC
- The XRP ETF approval odds may soar if the Ripple lawsuit comes to an end
The XRP community is anticipating the potential announcement of the settlement of the lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple Labs Inc. As the settlement negotiation progresses, new updates on the causes of delays have emerged. According to Fox Business Senior Correspondent Charles Gasparino, the Ethereum ICO might be a factor in determining the settlement terms.
The Ethereum Reference in Ripple SEC Lawsuit
As stated in a scoop on X, Gasparino said one of the primary issues under consideration is how XRP will be classified after the lawsuit. According to him, the parties are exploring whether it will trade as a utility, thus removing the securities tag.
Citing his anonymous sources, Gasparino noted that Ethereum is a major example of being profiled. In its earlier days, it also conducted an Initial Coin Offering (ICO) like XRP. The scoop also noted that the characteristics of its issuance were not different from that of XRP. Both protocols raised money to finance the development of a platform.
Despite this, Ripple Labs was sued by the US SEC as the claims hinged on how Ethereum had morphed into a commodity. According to the update, the market regulator is considering whether it can make a similar commodity case for XRP.
Community Reacts to the New Ripple SEC Lawsuit Update
Recall that the potential XRP lawsuit settlement news came earlier this week after Eleanor Terrett confirmed internal talks. However, the latest updates have triggered a new round of reactions from the community.
Ripple Labs CTO David Schwartz explained the disadvantages of XRP. He noted that, unlike XRP, ETH was privately sold by an issuer before any innovator designed a ledger or blockchain.
Other community members have also argued the case for XRP, noting that the coin is not a security. Experts noted that once these conditions are ironed out, Ripple Labs may also see its case settled as the regulator closed the Coinbase lawsuit earlier this month.
Potential Implications of the XRP Lawsuit Dismissal
Despite the lingering legal battle, many asset managers have moved to launch XRP-based exchange-traded funds in the US. Considering the complexity of its security status, Bloomberg Senior ETF Analysts Eric Balchunas and James Seyffart pegged the XRP ETF approval odds at 60%.
If this lawsuit is resolved in the coming weeks, it might boost the odds of approval of the XRP ETF soon. In addition, the case dismissal can trigger a massive XRP price rally, per an earlier CoinGape analysis.
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