### Could XRP Become a Trillion-Dollar Asset? Ripple Veteran Weighs In
– **Charles Gasparino compared Ethereum’s issuance to XRP’s, arguing they are not fundamentally different.**
– **With Paul Atkins likely to replace Gary Gensler as SEC Chair, clearer regulations for digital assets may finally be within reach.**
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### Ripple vs. SEC: The Lingering Legal Battle
Ripple Labs, the company behind XRP, has been embroiled in a legal dispute with the U.S. Securities and Exchange Commission (SEC) since December 2020. The SEC accused Ripple of conducting an unregistered securities sale through its XRP offerings, questioning whether XRP qualifies as a security under U.S. law.
Fox Business journalist [Eleanor Terrett](https://x.com/EleanorTerrett/status/1899852341374779587) recently revealed that the case is currently at a standstill as Ripple negotiates better settlement terms. Under Mark Uyeda’s leadership, the SEC has backed away from several major legal battles, including investigations into Robinhood, Coinbase, and Gemini. This has led to speculation that the SEC might adopt a similar stance with Ripple, possibly delaying any further action until Paul Atkins is confirmed as the new SEC Chair.
### The XRP vs. Ethereum Debate
A central issue in the lawsuit is how XRP is regulated compared to Ethereum (ETH). Fox Business Senior Correspondent [Charles Gasparino](https://x.com/CGasparino/status/1900230903449751651) recently disclosed that the SEC is weighing whether XRP’s trading and utility resemble more of a commodity than a security.
Gasparino pointed out that Ethereum was initially issued through an Initial Coin Offering (ICO), a fundraising system similar to an Initial Public Offering (IPO) in traditional markets, where early investors acquire newly minted tokens. He further noted that both Ethereum and XRP were utilized to fund the development of their respective platforms, suggesting similarities in their early financial models.
Despite these parallels, Ethereum was never subject to an SEC lawsuit, whereas Ripple faced intense legal scrutiny. The SEC currently views Ethereum as having evolved into a commodity and is now reconsidering XRP’s classification.
Ripple’s Chief Technology Officer, [David Schwartz](https://x.com/JoelKatz/status/1900244178694791453), countered this argument, emphasizing that Ethereum was privately sold before any blockchain or ledger existed—whereas XRP was not. This distinction in their distribution models could significantly influence XRP’s regulatory standing.
### The SEC’s Lawsuit: Where Things Stand
In July 2023, U.S. District Judge Analisa Torres ruled that XRP does **not** qualify as a security when traded on public cryptocurrency exchanges. However, the ruling left room for institutional XRP sales to be classified as securities transactions under specific conditions.
By August 2024, a federal court mandated Ripple to pay a **$125 million fine** to the SEC for breaking securities laws, further adding to Ripple’s substantial legal costs, which have exceeded **$100 million**. Looking ahead, Ripple has until **April 16, 2025**, to respond to the SEC’s appeal. However, if the SEC decides to drop the case before that deadline, it could bring an end to the long-standing legal battle.
### What’s Next for XRP?
XRP has seen a **3.29%** gain in the past 24 hours but has dropped **9.46%** over the last week, currently trading at **$2.31**. Analysts remain optimistic, speculating that if the SEC drops the lawsuit, XRP could witness a major rally—potentially exceeding its all-time high of **$3.80 to $4.00**.
With regulatory clarity on the horizon, XRP’s future could hold significant potential, positioning it as a top contender in the cryptocurrency market.