Ripple vs SEC: XRP May Be Commodity, Fine Reduced

The legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) appears to be nearing its conclusion, according to recent insights from industry sources. Crypto analyst Andrew (@AP_Abacus) revealed that two SEC sources believe the case is very close to ending, suggesting that a resolution could be imminent. This development brings hope for regulatory clarity to XRP holders who have been awaiting a definitive outcome.

One of the most significant revelations from Andrew’s report is the expectation that XRP could be considered a commodity. This classification would place XRP under the oversight of the Commodity Futures Trading Commission (CFTC) rather than being treated as a security. If confirmed, this shift would be a major regulatory development, potentially alleviating concerns about XRP’s compliance status in the United States.

Another key takeaway from the report is the potential for a significantly reduced fine against Ripple. Andrew mentioned that a “greatly reduced fine” is expected, which aligns with Ripple’s legal team’s arguments for reconsideration of the penalties originally sought by the SEC. A lower fine could indicate a change in the SEC’s approach to crypto-related enforcement actions, particularly under its new leadership.

The report also highlighted the role of new leadership within the SEC, noting that the individuals overseeing the case recognize its broader implications for the crypto industry. How the SEC handles the resolution could set a legal precedent for future regulatory actions against other blockchain firms, underscoring the importance of this case.

The credibility of the report has sparked debate within the crypto community. Crypto analyst Cryptoinsightuk shared Andrew’s update, calling it a “nice update to wake up to.” In response to questions about the source’s reliability, Cryptoinsightuk suggested that while the source may not typically be supportive of XRP, the information could still hold merit.

This latest development follows an earlier report by a journalist who cited “two well-placed sources” stating that the Ripple case was nearing its conclusion. According to the journalist, the remaining obstacle is ongoing negotiations. Ripple’s legal team argues that the SEC’s evolving stance on crypto enforcement should lead to a reconsideration of its case, contending that maintaining the original ruling against Ripple would be inconsistent with the agency’s current approach to other cryptocurrency firms.

While there is no official statement, reports from multiple sources suggest that a resolution may be imminent. If XRP is considered a commodity and Ripple receives a significantly reduced fine, there could be a turning point for the cryptocurrency’s regulatory standing. Such an outcome could also influence the broader digital asset market by setting a precedent for how regulators handle similar cases.