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Here’s an interesting development in the ongoing Ripple saga: According to a recent report from FOX Business senior correspondent Charles Gasparino, the SEC might be considering classifying XRP as a commodity. This potential shift in stance is reportedly part of their settlement discussions with Ripple Labs.

SCOOP: Off of @EleanorTerrett‘s scoop from yesterday on the @Ripple – @SECGov settlement negotiations, 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. I am told the…

— Charles Gasparino (@CGasparino) March 13, 2025

Gasparino elaborated that regulators are currently examining whether XRP shares similarities with commodities like Ethereum. It’s worth noting that the SEC already considers Ethereum a “pure commodity,” even though it, too, initially raised funds through an Initial Coin Offering (ICO).

Why is this potential reclassification a big deal? Well, it could significantly impact Ripple’s ongoing legal fight with the SEC, which revolves around allegations of unregistered securities offerings. The way Ethereum has been regulated has become a major point of comparison in this case. Both XRP and ETH were, after all, initially used to fuel the development of their respective blockchain networks.

Interestingly, Ripple didn’t actually conduct an ICO for XRP. Instead, XRP was created right from the start when the XRP Ledger launched in 2012, with a total supply of 100 billion tokens pre-mined. Of these, 80 billion XRP went to the company (then known as OpenCoin), and the remaining 20 billion were allocated to its founders and key team members.

To fund operations and boost market liquidity, Ripple distributed XRP using a controlled system involving escrow accounts and regular sales.

This distribution approach has been a sticking point, setting it apart from more typical decentralized cryptocurrency launches. It’s also drawn attention from regulators like the SEC, who have questioned whether Ripple’s XRP sales constituted unregistered securities offerings.

However, a significant legal win for Ripple in 2023 offered some clarity, establishing that XRP sales on public exchanges didn’t break securities laws.

As for these latest developments in settlement discussions, neither Ripple nor the SEC has issued any public statements just yet.

Adding to the picture, FOX Business journalist Eleanor Terrett reported on Wednesday that the SEC and Ripple legal battle may be reaching its final stages, with both sides reportedly looking for a resolution.

Word is that Ripple’s legal team is in talks to adjust the previous ruling, which included a $125 million fine and restrictions on XRP sales to institutional investors.

According to Terrett, the current discussions are centered around fine-tuning these terms to align with recent shifts in SEC policies under its new leadership.

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