The Ripple-SEC lawsuit settlement talks are moving forward, with significant attention on how XRP’s status will be defined in the aftermath. Key details of the settlement process reveal that XRP may be classified as a commodity, similar to Ethereum, which could have profound implications for its future in the market.
Ripple and the SEC are in advanced talks about the lawsuit settlement, with one of the key issues being how XRP will be classified post-settlement.
Ethereum’s ICO and its eventual classification as a commodity are central to these discussions. Ripple is seeking to have XRP treated in a similar manner to Ethereum, potentially removing the securities label.
XRP’s potential reclassification could pave the way for the approval of an XRP-based exchange-traded fund (ETF), which is currently being considered by asset managers. The odds of XRP ETF approval are now seen at 60%, according to experts.
Ethereum Reference in the Ripple Case: The case hinges partly on Ethereum’s early history. Both XRP and Ethereum held ICOs to raise funds for their development, and the SEC has already accepted Ethereum’s shift into a commodity. Ripple is now exploring if XRP can be positioned similarly, leveraging Ethereum’s journey as a precedent.
Ripple’s CTO, David Schwartz, argued that Ethereum’s early sale model differed from XRP’s and pointed out that Ethereum’s blockchain was established before its issuer sold tokens. This contrast is an important part of the ongoing settlement talks.
Implications for XRP and the Crypto Market: If the lawsuit is resolved favorably for Ripple, it could significantly affect the status of XRP, especially in relation to its potential as an ETF. A positive outcome could also trigger a price rally for XRP, aligning it more closely with institutional investment trends. With the SEC wrapping up other legal battles, such as the Coinbase case, many are hopeful that a resolution for Ripple may soon follow.
As discussions continue, the outcome of this case will have far-reaching consequences for XRP, its classification, and the broader regulatory landscape for cryptocurrencies in the United States.
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