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.

Cryptocurrency XRP (XRP) is rising as rumors grow louder that Ripple Labs is close to settling its long running legal battle with the U.S.

The crypto token XRP ( XRP -6.51%) is falling on Monday. As measured from Friday at 4 p.m., XRP is down 15.7% as of 12:50 p.m. ET and was down as much as 16.5% earlier in the day. The drop comes as the S&P 500 lost 2.3%, and the Nasdaq Composite lost 3.6%.

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.