The American Commission for Securities and Exchange (SEC) would examine if XRP is qualified as goods rather than guarantee in its current settlement negotiations with Ripple.
According to journalist Charles Gasparino, the dry weighs similarities between XRP and Ethereum (ETH). The current administration of the agency would have considered Ethereum as a commodity despite its initial emission through an initial range of parts (ICO).
Gaspatino said::
“ETH was obviously issued as ICO; Its characteristics on the show were not different from XRP – both used to finance the construction of a platform, but Ripple was prosecuted and Ethereum did not do it because ETH had since transformed into commodity. What is discussed now is the comparison between the 2 cryptos. »»
The assessment by the commission of commercial utility and the XRP market function could be crucial to determine the final terms of its trial against Ripple, which could cause potential regulations.
The SEC trial against Ripple, filed in December 2020, allegedly alleged that the company had organized an offer of titles not registered by the sale of XRP.
However, in August 2023, the American district judge Analisa Torres rendered a pivotal decision that was different from the institutional and detail sales of Ripple. The court determined that, although the institutional sales of XRP constituted investment contracts and thus violated the laws on securities, secondary market sales to retail investors were not considered as offers of non -recorded securities.
Consequently, the decision imposed a penalty of $ 125 million on Ripple and issued a permanent injunction restricting the institutional sales of XRP.
Potential regulations
Recent reports suggest that the case is in its Resolution final stagesWith discussions focused on securing terms that reflect the evolution of regulatory perspectives on crypto.
Ripple’s legal team could put pressure for a reduction in sanctions, arguing that an implicit intake of reprehensible acts with the changing position of the dry on the application of cryptography.
The Company maintains that if the SEC recuisted the regulatory classification of digital assets, its regulations should be aligned with this evolving framework.
Lawyer James Murphy, known as Metalawman, suggested that the SEC would have accepted a settlement to abandon calls and perceive the $ 125 million penalty “in the blink of an eye”.
However, this result may not be favorable to Ripple, in particular if the company intends to continue a future offer of exempt securities or a first public offer.
The deliberations of the dry on the classification of XRP reflect broader uncertainties in the regulation of cryptography. If the agency recognizes XRP as a commodity, it could create a precedent for other regulatory examination of the crypto, such as Solana (Sol) and Cardano (ADA).
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