Emma Nelson 
The XRP community is eagerly awaiting the potential announcement regarding the settlement of the long-standing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs Inc. As the settlement negotiations progress, new insights into the causes of the delays have begun to surface. Notably, Fox Business Senior Correspondent Charles Gasparino recently reported that the Ethereum Initial Coin Offering (ICO) might play a significant role in shaping the terms of the settlement.
XRP
The Role of Ethereum in the Ripple SEC Lawsuit
According to Gasparino’s report, one of the key points under discussion in the settlement talks is how XRP will be classified after the lawsuit is settled. Specifically, there is ongoing deliberation over whether XRP should be classified as a utility token, which would remove the “security” label currently imposed on it by the SEC. Gasparino, citing his anonymous sources, noted that Ethereum’s ICO history is being closely examined, as it is considered a major example in these discussions. In its early days, Ethereum conducted an ICO similar to XRP’s, raising funds to develop its platform.
Despite this, Ethereum’s legal treatment has evolved differently. Initially, Ethereum’s ICO was conducted in a manner very similar to XRP’s, raising questions about why the SEC has pursued a case against Ripple Labs while Ethereum was able to transition into being classified as a commodity. Gasparino’s sources revealed that the SEC is now weighing whether it could apply a similar “commodity” classification to XRP, mirroring Ethereum’s legal status in the market.
Ripple Community Reacts to the Latest Legal Updates
The recent developments in the Ripple SEC lawsuit have sparked a renewed wave of reactions from the XRP community. Earlier this week, Eleanor Terrett confirmed internal talks about a potential settlement, fueling optimism among supporters. However, the latest reports have reignited debates within the community, particularly regarding how the SEC views the nature of XRP compared to Ethereum. Ripple Labs’ Chief Technology Officer, David Schwartz, pointed out a key difference in the issuance of both tokens. He explained that, unlike XRP, Ethereum was privately sold by its issuer before any innovators or developers even created the Ethereum blockchain or its ledger system.
In contrast, XRP has faced the brunt of the SEC’s lawsuit based on the premise that it may constitute an unregistered security. Many members of the XRP community have continued to argue that the coin is not a security, asserting that it should not be treated as such under U.S. law. Experts believe that once these legal nuances are addressed and settled, Ripple Labs may finally see its case come to a close, much like the SEC’s recent closure of its case against Coinbase earlier this month.
Potential Implications of a Settlement for XRP
The ongoing legal battle surrounding XRP has undoubtedly been a key factor in shaping investor sentiment and market dynamics. However, despite the lingering uncertainty, a number of asset managers are now pushing forward with launching XRP-based exchange-traded funds (ETFs) in the U.S., demonstrating growing confidence in the digital asset. According to Bloomberg Senior ETF Analysts Eric Balchunas and James Seyffart, the odds of an XRP ETF being approved are currently pegged at 60%, reflecting the increasing optimism about the token’s future.
Should the lawsuit be resolved in the coming weeks, it could have significant implications for the future of XRP, particularly in terms of regulatory clarity and institutional acceptance. A potential settlement would likely pave the way for a more favorable regulatory environment for XRP, and the approval of an XRP ETF could soon follow. Furthermore, the dismissal of the lawsuit could trigger a massive price rally for XRP, according to earlier analysis by CoinGape. If the case is settled, it would likely restore confidence in the market, leading to a surge in XRP’s value as the legal uncertainties surrounding its status are cleared.
