According to the latest development, the SEC is considering classifying XRP as a commodity and potentially grouping it with ETH.
Fox Business reporter Charles Gasparino, who provided information on the subject, said in his statement:
“In the SEC-Ripple settlement negotiations, one issue being considered by the commission is whether XRP continues to be traded and has a use that makes it more of a commodity and not a security. I was told that the Ethereum example is key; ETH was clearly issued as an initial coin offering; the issuance specifications were no different than XRP, both were used to fund the creation of a platform, but Ripple was sued and Ethereum was not because ETH has since become a commodity. What is being discussed now is the comparison between the 2 cryptos. The SEC believes that ETH transactions are pure commodities. They are trying to determine if the commission can resolve this case with XRP.”
Ripple CTO David Schwartz then said that ETH was sold privately before it had even created its own blockchain, and that this was not the case with XRP.
*This is not investment advice.
