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

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 brought the lawsuit against Ripple in December 2020, alleging that Ripple's sales of XRP were unregistered securities offerings. Ripple has pushed back, arguing that the asset XRP should not be regulated as a security and accusing the SEC of inconsistent regulation in the crypto space.

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.