SEC Seeks to Classify XRP As a Commodity like Ethereum, Ripple CTO Says There Was No ICO For XRP Like ETH
XRP community members are challenging FOX Business Senior Correspondent Charles Gasparino’s claims regarding the potential resolution of the Ripple lawsuit.
Gasparino shed light on the ongoing negotiations between the SEC and Ripple for the early dismissal of their case. He referenced a previous report from his colleague, Eleanor Terrett, who indicated the lawsuit was nearing its conclusion.
Citing two sources familiar with the case, Terrett revealed why the SEC has yet to drop the Ripple case, as in other crypto-related enforcement actions.
In the report, Terrett suggested that Ripple was negotiating to dismiss the August 2024 ruling. As reported earlier, the verdict comprises a $125 million fine and a permanent injunction.
Gasparino’s Claim About Ripple Case
In an updated report, Gasparino claimed he learned that the SEC is focused on whether XRP continues to trade and possesses a utility that would align it more as a commodity rather than a security.
Additionally, he mentioned Ethereum as a benchmark, noting that although its team initially issued ETH via an ICO—similar to XRP—ETH has evolved over the years and now trades as a pure commodity.
However, Gasparino noted that the commission is attempting to make a similar case for XRP by ascertaining whether the coin has evolved into a commodity like ETH.
He highlighted this comparison as the main discussion at the SEC regarding the potential dismissal of the Ripple case.
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
XRP Enthusiasts React
As expected, his report did not go down well with several XRP enthusiasts. Many users corrected what they saw as misconceptions in his report, while others accused him of bias.
Reacting, Ripple’s CTO David Schwartz clarified that, unlike XRP, Ethereum issuers privately sold ETH before the development of its blockchain.
ETH was privately sold by an issuer prior to any ledger or blockchain existing. XRP was not.
— David “JoelKatz” Schwartz (@JoelKatz) March 13, 2025
Top legal expert Bill Morgan also reacted to Gasparino’s report. He contended that there has never been a scenario in which a judge found that a token is a security in itself but can still morph into a commodity.
Attorney Morgan mentioned Judge Torres’ finding about XRP, which held that XRP is not a security in itself. He argued that the SEC is not contesting the decision on appeal.
The lawyer characterized Gasparino’s claim about the ETH and XRP comparison as highly unlikely. He added that this position conflicts with the SEC reasoning that led to the dismissal of other crypto-related lawsuits.
Furthermore, popular community figure Ashley Prosper slammed Gasparino for being biased against XRP and Ripple. Prosper accused the journalist of ‘lacking a comprehensive understanding of the legal intricacies’ involved in the lawsuit.
Meanwhile, John Deaton, a pro-XRP lawyer and former candidate for the U.S. Senate, recommended three articles to aid the SEC’s understanding of XRP’s non-security status. They include analysis conducted by top regulators, including SEC officials, who held that XRP is not a security.
Notably, the SEC has yet to communicate its decision on the Ripple lawsuit, as the community anticipates an imminent resolution.
