The SEC is considering classifying XRP as a product for its ongoing settlement meeting with Ripple Labs, Senior Fox Business Correspondent Charles Gasparino reported today.
Scoop: @ripple from @Eleanorterrett’s scoop from @ripple’s @One question of weight comparison is whether $XRP continues to trade, making it more productive and has a utility that is not security. I’m told…
– Charles Gasparino (@cgasparino) March 13, 2025
Gasparino said securities regulators are assessing whether XRP shares features with products like Ethereum.
According to reporters, Ethereum’s regulated treatments have emerged as an important comparison Points, as Both XRP and ETH were initially used to fund blockchain network development.
Ripple previously revealed that it has not implemented an ICO for XRP. Ripple’s CTO David Schwartz, and other officials argued that XRP is distributed in a different way than the typical ICO model.
Ripple’s distribution model was a point of competition as it was different from decentralized cryptocurrencies. Startup and It elicited scrutiny from regulators like the SEC. This accuses them of selling unregistered securities.
However, Ripple’s legal victory in 2023 revealed that XRP sales on public exchanges did not violate securities laws.
Neither Ripple nor the SEC provide public comment on the latest developments in the settlement discussion.
Potential changes in the SEC’s attitude towards XRP could result in a reclassification of XRP and could affect Ripple’s continued legal battle with the SEC against unregistered securities offerings.
Fox business journalist Eleanor Terrett reported on Wednesday that a legal battle between the SEC and Ripple was approaching conclusion.
Ripple’s legal team reportedly negotiated a decision adjustment, which imposed a $125 million fine and a limit on selling XRP to institutional investors.
Terrett said the ongoing discussion focuses on adapting the terminology to reflect recent changes in SEC policies under new leadership.
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