Ripple’s legal dispute before the end – is XRP classified like Ethereum?
- Charles Gasparino compared Ethereum’s emission to that of XRP and found that they did not differ fundamentally.
- With Paul Atkins, who is likely to replace Gary Gensler as a SEC chairman, legal certainty could finally be found for digital assets.
Ripple Labs, the company behind the cryptocurrency XRP, has been involved in a legal dispute with the US stock exchange supervision (SEC) since December 2020. The SEC claimed that the sale of XRP by Ripple was an unregistered security offer, which caused concerns about the classification of XRP according to the US securities laws.
According to the FOX business journalist Eleanor terrett The case is currently delaying because Ripple strives for better comparison conditions. Under the leadership of Mark Uyeda, the SEC has withdrawn from several top -class legal disputes. As CNF reported, the supervisory authority has discontinued its investigation against Robinhood, Coinbase and Gemini. This has fueled speculation that the SEC could pursue a similar approach with ripple and may be waiting for Paul Atkins to be confirmed as a second chairman before taking its next step.
XRP vs. Ethereum: A regulatory debate
A central point of dispute in the legal dispute is the regulatory treatment of XRP compared to Ethereum (ETH). Fox Business’s senior correspondent, Charles Gasparinoshared recently on x with that the SEC debates whether the current trade and benefit of XRP is more of a goods than a security.
SCOOP: Off of @EleanorTerrett‘s scoop from yesterday on the @Ripple – @SECGov settlement negotiations, one issue that is being weighed by the commission is whether $XRP continues to trade and have a utility that makes it more a commodity and not a security. I am told the…
— Charles Gasparino (@CGasparino) March 13, 2025
Gasparino pointed out that Ethereum was originally issued by an initial coin offering (ICO), a financing method in which investors buy newly issued tokens, similar to companies, with an initial public offering (IPO) on the stock market. He pointed out that both ETH and XRP were used to finance the platform development and moved parallels between their early financing models.
However, while Ethereum was never sued, Ripple was confronted with legal steps. The SEC believes that Ethereum has now developed into a goods and now eliminates the classification of XRP.
David Schwartz CTO von Ripple Labscontradicted this view with the argument that Ethereum was already sold privately before there was even a blockchain or a ledger, but did not. This fundamental difference in the sales models could influence the regulatory position of XRP.
ETH was privately sold by an issuer prior to any ledger or blockchain existing. XRP was not.
— David "JoelKatz" Schwartz (@JoelKatz) March 13, 2025
In July 2023, judge Analisa Torres from the US District Court for the Southern District of New York decided that XRP is not a security if it is sold on public cryptocurrency exchanges. However, institutional sales of XRP could still be classified as securities offers under certain conditions. In August 2024, a federal court ordered that Ripple had to pay a penalty of $ 125 million to the SEC for the violation of securities laws, which contributes to the considerable legal costs of the company that exceeded $ 100 million. On April 16, 2025, an important period runs until the ripple has to react to the appeal of the SEC. However, if the SEC decides to drop the case before this time, the overall complaint could be rejected.
XRP has increased by 3.29 % in the last 24 hours, but has fallen 9.46 % in the past week and is now traded for $ 2.31. Analysts remain optimistic and believe that XRP could experience a rally if the SEC withdraws its lawsuit and possibly climbed over its all -time high from $ 3.80 to $ 4.00.
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