Ripple vs. SEC: Settlement Talks Nearing Conclusion as SEC Compares XRP With ETH

The long court battle between Ripple and the United States Securities and Exchange Commission (SEC) now seems to finally be at an end. Insiders revealed to Fox Business’s Eleanor Terrett that a settlement is being negotiated. Ripple’s legal team is currently negotiating better terms after an August 2023 court ruling imposed a $125 million fine and restricted the company from selling XRP to institutional investors. However, the delay in finalizing the settlement comes as Ripple pushes for fairer treatment.

Ripple Negotiating Better Terms

Ripple argues that the SEC has been relaxing regulations for other cryptocurrency companies and hence cannot inflict disproportionate punishment upon them. The company believes that participating in the current settlement agreement would be equal to admitting fault, which it strongly resists. Additionally, it has also been said that even the SEC is not convinced that Ripple has violated any rules. This uncertainty has allowed Ripple to renegotiate the terms and push for a fairer outcome.

Comparing XRP and Ethereum

One of the key factors delaying the settlement is the comparison between XRP and Ethereum. Financial journalist Charles Gasparino highlighted that the SEC considers Ethereum to be a commodity, even though it was also initially sold through an Initial Coin Offering (ICO). In contrast to Ethereum, Ripple was legally challenged, which created the question of regulatory inconsistency. According to Gasparino, the SEC is in a debate on whether XRP, like Ethereum, should be classified as a commodity as well. If XRP is given the same status, Ripple’s legal issues will greatly abate.

Key Arguments in Ripple’s Favor

Pro-XRP attorney John Deaton has recommended that the SEC consider a range of significant factors before issuing a final ruling. These are:

• A 2018 opinion piece by then-former Commodity Futures Trading Commission (CFTC) Chairman Giancarlo contended that XRP is not a security.
• A 2018 SEC report did not categorize XRP as security or suggest enforcement actions on Ripple.
• Former SEC Commissioner Joe Grundfest said in a 2020 letter that he disagrees with the differential treatment of XRP and Ethereum.

The above key arguments favor Ripple to negotiate with SEC and lead the case towards a win. 

What’s Next for Ripple and XRP?

Once the case conclusion arrives, the future of XRP and the broader cryptocurrency world will be affected. If Ripple is successful in its attempt at better settlement terms, this could also pave the way for more open regulatory guidelines for digital currencies. 

The current price of XRP is $2.29, with a 2.90% growth from the last 24 hours. Many market observers believe that this growth may be the optimistic effect of the upcoming SEC statement. Investors and crypto enthusiasts are eagerly awaiting an official announcement, which could determine the legal status of XRP once and for all.

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