Ripple's XRP Classified as Digital Commodity Amid Ongoing Regulatory Uncertainty

Ripple's Chief Legal Officer Stuart Alderoty is emphasizing that XRP's regulatory status remains clear after years of litigation and agency guidance. The recent Senate vote on the CLARITY Act failed to advance, leaving broader crypto market structure legislation unresolved.

Alderoty pointed out that the 2023 federal court ruling established XRP as not a security, while also citing the March SEC-CFTC interpretation naming XRP a digital commodity. This framework classifies XRP as a digital commodity while preserving the distinction between the token itself and transactions that could qualify as investment contracts under securities law.

Alderoty expects future rulemaking from both agencies to continue setting out clear rules of the road, stating 'We expect future rulemaking from both agencies to continue to set out clear rules of the road.'