SEC Formally Recognizes XRP as Digital Commodity, Ripple Chief Legal Officer Confirms Long-Term Non-Security Status

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Gate News, March 18 — Ripple Chief Legal Officer Stuart Alderoty welcomed the latest regulatory guidance from the U.S. Securities and Exchange Commission (SEC), which officially classifies XRP as a digital commodity rather than a security. This milestone ends long-standing debates over XRP’s regulatory status, clarifying that its value derives from network functionality and market supply and demand, rather than expected profits from a centralized entity.

The joint guidance issued by the SEC and the U.S. Commodity Futures Trading Commission (CFTC) provides a clearer regulatory framework for digital assets. The document lists XRP alongside Bitcoin, Ethereum, Cardano, and Dogecoin as digital commodities, emphasizing its unique nature and independent market position. It also explains when crypto assets may meet the definition of an investment contract, and covers activities such as staking, airdrops, and token wrapping, offering operational guidance for market participants.

Alderoty noted that this classification aligns with Ripple’s long-standing position and praised the efforts of regulators for ultimately providing clarity that investors and innovators have awaited for over a decade. He emphasized that XRP is not a security, which will help boost market confidence and support the growth of the Ripple ecosystem. The SEC’s clear statement also helps eliminate barriers caused by previous legal disputes and regulatory uncertainties.

Since the U.S. federal court led by Judge Analisa Torres ruled that XRP is not a security, tensions between Ripple and the SEC have gradually eased. The latest SEC guidance further affirms this stance, providing legal support for Ripple’s ongoing use in digital payments and cross-border transactions, and offering greater confidence for global financial institutions involved with XRP.

This regulatory clarity is seen by the market as a significant positive for the crypto industry, likely to promote long-term adoption of XRP by institutions and in cross-border payments, while also strengthening investor trust in Ripple and its tokens.

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