The U.S. Securities and Exchange Commission (SEC) is reportedly weighing the possibility of classifying XRP as a commodity rather than a security. This shift in perspective has surfaced amid ongoing settlement negotiations with Ripple Labs, hinting at a potential change in the agency’s regulatory stance toward the cryptocurrency.
According to insiders cited by Fox Business senior correspondent Charles Gasparino, the SEC is reassessing XRP’s utility and market behavior to determine if it aligns more closely with commodities like Ethereum (ETH). “One issue that is being weighed by the commission is whether $XRP continues to trade and have a utility that makes it more a commodity and not a security,” Gasparino reported.
“I am told the Ethereum example is key,” he added, noting that the regulator is comparing XRP’s trajectory to ETH’s. “The SEC believes ETH trades as a pure commodity. They are trying to determine if the commission can make that case with $XRP.”
Ethereum, despite its origins in an initial coin offering (ICO), evolved into a commodity and avoided SEC enforcement. The agency is now exploring whether XRP has followed a similar path. This discussion is part of broader settlement talks with Ripple, where the SEC previously secured a partial victory—a $125 million fine and a permanent injunction on institutional XRP sales. However, Ripple’s legal team is pushing for more favorable terms, arguing that recent regulatory shifts under new SEC leadership should lighten past penalties.
Adding another layer to the debate, Maximilian Staudinger has proposed designating XRP as a strategic financial asset. Submitted to the SEC’s recently formed crypto task force, his plan suggests that integrating XRP into the U.S. financial system could unlock $1.5 trillion in liquidity and save $7.5 billion annually in transaction costs. Staudinger advocates for an accelerated rollout, including XRP use in government transactions, bank liquidity solutions, and even establishing a national Bitcoin reserve.
Amid these developments, XRP’s market performance has been mixed. As of March 14, 2025, at 10:47 AM PDT, XRP is trading at approximately $2.28, reflecting a 2.6% increase in the last 24 hours. However, a 13% drop over the past week shows it lagging behind the broader crypto market, which is down 6.40%. Despite this, XRP’s fully diluted valuation (FDV) has overtaken Ethereum’s, reaching $229.2 billion compared to ETH’s $228.1 billion, signaling strong underlying market interest.
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