Ethereum ICO Might Be a Factor in Determining the Settlement Terms of the SEC Lawsuit Against Ripple Labs

As the settlement negotiation progresses, new updates on the causes of delays have emerged. According to Fox Business Senior Correspondent Charles Gasparino, the Ethereum ICO might be a factor in determining the settlement terms.

The XRP community is eagerly awaiting the potential announcement of the settlement of the lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple Labs Inc. As the settlement negotiation progresses, new updates on the causes of delays have emerged.

According to Fox Business Senior Correspondent Charles Gasparino, the Ethereum (ETH) ICO might be a factor in determining the settlement terms.

As stated in a scoop on X, Gasparino said one of the primary issues under consideration is how XRP will be classified after the lawsuit. According to him, the parties are exploring whether it will trade as a utility, thus removing the securities tag.

Citing his anonymous sources, Gasparino noted that Ethereum is a major example being profiled. In its earlier days, it also conducted an Initial Coin Offering (ICO) like XRP. The scoop also noted that the characteristics of its issuance were not different from that of XRP. Both protocols raised money to fund the development of a platform.

Despite this, Ripple Labs was sued by the US SEC as the claims hinged on how Ethereum had morphed into a commodity. According to the update, the market regulator is considering whether it can make a similar commodity case for XRP.

One of the main issues being discussed in the potential settlement of the @SECUrise lawsuit against Ripple is how XRP will be classified after the suit, a source close to the matter tells Fox Business. The parties are discussing whether it will trade as a utility, removing the securities tag. As…

— Charles Gasparino (@CharlesGasparino) September 18, 2023

Community members reacted to the new Ripple SEC lawsuit update. They argued the case for XRP, noting that the coin is not a security. Experts noted that once these conditions are ironed out, Ripple Labs may also see its case settled as the regulator closed the Coinbase lawsuit earlier this month.

However, David Schwartz, the CTO of Ripple Labs, highlighted some disadvantages of XRP. He noted that, in contrast to XRP, ETH was privately sold by an issuer before any innovator designed a ledger or blockchain.

This is false. ETH was privately sold by an issuer (a VC fund) before any innovator designed a ledger or blockchain. That’s the opposite of XRP. https://t.oetro.com/2023/09/18/exclusive-major-factor_in_ripple_sec_settlement_will_determine_if_xrp_is_a_commodity_or_a_security/

— David Schwartz (@hertzogeriv) September 18, 2023

The potential XRP lawsuit settlement news came earlier this week after Eleanor Terrett, a reporter for the American Banker, confirmed internal talks.