SEC Order Misreported: XRP, Solana 'Commodity' Classification a Buffer Rule

The SEC has approved an order that appears to classify XRP, Solana, Bitcoin, and Ether as commodities. However, this classification is not what it seems. The order in question, Release No. 34-106268, dated September 3, actually relates to a change in listing standards for Nasdaq Texas.

The order allows the exchange to hold up to 15% of its assets in digital commodities or non-qualifying securities. This is a buffer rule that extends an existing framework approved by the SEC earlier this year. The four cryptocurrencies mentioned are included in a hypothetical trust as eligible commodities, but only because they meet the exchange's listing test.

The order spells out the criteria for eligibility, which includes trading on an ISG market for at least 6 months and having an ETF with at least 40% economic exposure. This is a market-surveillance standard designed to monitor shares for fraud and manipulation.