XRP Could Already Qualify as Digital Commodity Under Proposed Law

XRP's regulatory status may be clearer than thought thanks to recent analysis. Bill Morgan, an analyst and lawyer, says that the digital token already meets some requirements for being treated as a digital commodity under the proposed CLARITY Act.

The legislation aims to clarify the treatment of digital assets by regulators, and one provision stipulates that no issuer or affiliated person beneficially owns 20% or more of a digital commodity. Morgan argues that XRP could already satisfy this test due to its distribution outside of Ripple and related parties.

Morgan also points out an alternative provision involving exchange-traded products. XRP could potentially qualify under this provision as well, given the Senate draft's cutoff for certain network tokens with ETFs on a national securities exchange.