The SEC is trying to classify XRP as a product like Ethereum.

Members of the XRP community are challenging the claims of Charles Gasparino, senior correspondent Charles Gasparino, regarding the potential resolution of the Ripple lawsuit.

Gasparino shed light on the ongoing negotiations between the SEC and the ripples due to the early firing of their cases. He referenced an earlier report from his colleague Eleanor Terrett. Eleanor Terrett showed that the lawsuit is approaching conclusion.

Citing two sources familiar with the case, Terrett revealed why the SEC has not yet dropped Ripple Case, like other crypto-related enforcement measures.

In the report, Terrett proposed that Ripple was negotiating to reject the August 2024 ruling. As previously reported, the verdict consists of a $125 million fine and a permanent injunction.

Gasparino’s claims regarding the Ripple incident

In an updated report, Gasparino argued that the SEC is focusing on whether XRP continues to trade, and whether it owns more utilities as a product rather than security.

Additionally, he mentioned Ethereum as a benchmark, and although the team initially issued ETH via ICOs, similar to XRP, ETH has evolved over the years and is now traded as a pure product.

However, Gasparino noted that the committee is attempting a similar lawsuit for XRP by checking whether the coin has evolved into a product like ETH.

He highlighted the comparison as a major SEC debate regarding potential dismissals in the Ripple case.

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

XRP enthusiasts respond

As expected, his reporting didn’t go well with a few XRP enthusiasts. Many users fixed what he saw as a misconception in his report, while others accused him of bias.

In Reacting, Ripple’s CTO David Schwartz revealed that unlike XRP, the Ethereum publisher sold ETH privately before the development of the blockchain.

ETH was sold personally by the publisher before an existing ledger or blockchain. XRP wasn’t like that.

– David “Joel Katz” Schwartz (@Joel Katz) March 13, 2025

Legal expert Bill Morgan also responded to Gasparino’s report. He argued that although the judge itself was security, there was never a scenario in which he found that it could still be transformed into a product.

Attorney Morgan mentioned Judge Torres’ discovery about XRP, which XRP found itself not security. He argued that the SEC had not challenged the decision on appeal.

The lawyers characterized Gasparino’s claims about the comparison of ETH and XRP as highly unlikely. He added that the position contradicts SEC reasoning that led to the dismissal of other crypto-related cases.

Additionally, popular community figure Ashley Prospect blamed Gasparino for his bias towards XRP and ripples. Prosper accused journalists of “lacking a comprehensive understanding of legal complexity” involved in the lawsuit.

Meanwhile, John Deaton, an XRP lawyer and former U.S. Senate candidate, recommended three articles to help the SEC understand XRP’s non-security status. They include analysis conducted by top regulators, including SEC officials who have determined that XRP is not security.

In particular, the SEC has not yet communicated its decision regarding the Ripple litigation, as the community anticipates an imminent resolution.