XRP supporters cheer as Ripple and SEC discuss lawsuit settlement

The US Securities and Exchange Commission (SEC) and Ripple are negotiating a possible settlement of the lawsuit. The focus is on whether XRP should be considered a commodity or a security.

Fox Business journalist Charles Gasparino reports that the SEC is analyzing XRP's functionality and trading activity that could confirm its status as a commodity. The case of Ethereum (ETH), originally issued through an ICO, is seen as a precedent. However, ETH was later recognized as a commodity. Unlike Ripple, no lawsuit was filed against Ethereum.

The legal battle between Ripple and the SEC has been continuing since 2020. Major investors and crypto communities support Ripple's position, highlighting the usefulness of XRP and pointing to double standards of the regulator.

The recognition of XRP as a commodity by SEC could pave the way for its wider application and set a precedent for regulating other cryptocurrencies. The commission's decision remains uncertain, and market participants are closely watching the situation, TimesTabloid reports.