SEC Sharpens Crypto Classification Guidance, Reinforcing XRP's Commodity Status

The SEC's Division of Corporation Finance has updated its crypto asset FAQ, providing further clarification on the classification of XRP. The updated guidance, published on September 28, 2026, builds on the original FAQ from September 25 and the landmark March Interpretive Release that classified XRP as a digital commodity. According to prominent crypto analyst EGRAG CRYPTO (@egragcrypto), the update sharpens the legal architecture around crypto classification, making it clear that functionality, utility, and decentralization are central to the SEC's assessment framework. XRP, which operates on a functional, decentralized network, meets these criteria, reinforcing its commodity status.

The update addresses promotional activity, stating that promoting a crypto system's current utility does not automatically constitute a representation or promise to engage in essential managerial efforts. This clarification gives decentralized, functional networks more operational flexibility. The FAQ also clarifies that a functional crypto system with no central party announcing a buyback program would not constitute a representation or promise of essential managerial efforts.

The updated guidance is part of a broader regulatory shift the SEC has built through its 2016 guidance. The March Interpretive Release established XRP's commodity status, and the original September 25 FAQ built on that release. The September 28 update further refines it, providing additional staff-level guidance supporting XRP's commodity classification.