A new report revealed that the SEC is reportedly considering whether the $XRP token has "morphed" into a commodity as Ethereum has done over the years – the discussions are reportedly part of talks around a nearing agreement over the regulator's lawsuit against Ripple.

The prolonged legal battle between the SEC and Ripple Labs, initiated in December 2020 over the alleged $1.3 billion unregistered XRP (CRYPTO: XRP) sale, may soon conclude, according to a Fox Business report.

The SEC explores XRP commodity classification in talks with Ripple, impacting its legal status and comparison with Ethereum.

The SEC is considering classifying XRP as a commodity in its ongoing settlement talks with Ripple Labs. According to FOX correspondent Charles Gasparino, the US securities regulators are using Ether as a benchmark in order to build a case for either classifying XRP as a commodity or maintaining its current classification.

The case, which has dragged on since December 2020 when the SEC accused Ripple of raising over $1.3 billion through unregistered sales of its closely related XRP token, may finally be wrapping up — though not without last-minute wrangling over its terms.

XRP climbed Wednesday night as crypto users discussed a new report regarding the SEC supposedly wrapping up its case against Ripple, the largest known corporate holder of the $XRP token and the overseer of the XRP Ledger's development.

Ripple’s legal fight with the SEC is close to ending, but it’s not going quietly. The $125 million fine and permanent ban on institutional XRP sales are still on the table, and Ripple is pushing back.