The U.S. Securities and Exchange Commission (SEC) is considering classifying XRP as a commodity

A ruling by the SEC about cryptocurrency would create significant effects for the entire industry.

The U.S. Securities and Exchange Commission (SEC) is considering classifying XRP as a commodity in its ongoing settlement talks with Ripple, according to a report by FOX.

The major point of dispute in the settlement talks concerns XRP’s commodity characteristics stemming from its utility, along with its trading behavior. According to the SEC, Ether (ETH) started as an Initial Coin Offering before becoming a commodity through its time-based evolution.

However, the SEC, along with the Federal Reserve Banks, is evaluating if XRP should be recognized as a commodity exchange instead of a security. The regulation status of XRP depends on whether the regulators decide it is a security or a commodity.

The SEC is comparing Ether to XRP in its calculus, and the ruling about cryptocurrency would create significant effects for the entire industry.

The Conditions That Could Lead the SEC to Classify XRP as a Commodity Like Ether

The SEC is considering the conditions that could lead their legal team to classify XRP as a commodity similar to ETH. An XRP reclassification may trigger new regulatory measures for other cryptocurrencies across the board.

Chief Technology Officer David Schwartz from Ripple shared his perspectives through the social media platform X. Schwartz stated that ETH experienced private sales before its blockchain launched, whereas XRP had no such sales activity. The SEC might heavily consider the separation made between XRP and ETH when formulating its judgment.

The regulation status of XRP depends on whether the regulators decide it is a security or a commodity.

The major point of dispute in the settlement concerns the characteristics of the token that could lead to it being viewed as a commodity.

According to the SEC, ETH started as an ICO before becoming a commodity through its time-based evolution.

The apex court ruled that the crypto tokens sold during the fundraising were securities but later transitioned into commodities as they were traded publicly.

The apex court also ruled that the crypto tokens sold during the fundraising were securities but later transitioned into commodities as they was traded on exchanges.

The Importance Of Judge Analisa Torres’s Ruling

Analisa Torres's ruling recognized XRP as distinct from the other cryptocurrency types.

The varsity is setting the deadline of April 16, 2025, to file its appellant brief.

The apex court also ruled that the crypto tokens sold during the fundraising were securities but later transitioned into commodities as they was traded on exchanges.

The varsity is setting the deadline of April 16, 2025, to file its appellant brief.

The SEC faces an increasingly complex enforcement situation because Judge Analisa Torres recognized XRP as distinct from the other cryptocurrency types.

Analisa Torres's ruling recognized XRP as distinct from the other cryptocurrency types.

This case will establish important legal principles for the whole crypto industry.

The classification of XRP as a commodity would possibly decrease regulatory limitations.

The varsity could encounter additional legal battles because its classification remains as a security.

The crypto community is closely following the SEC's forthcoming actions.

The decision could impact not only the varsity but also the broader cryptocurrency market.