Has US SEC Labelled XRP As Commodity? Crypto Community Weighs In

The cryptocurrency market is actively discussing the U.S. Securities and Trade Fee’s (SEC) newest acknowledgment of XRP-related Trade Traded Funds (ETFs).

Whereas some imagine this alerts XRP’s classification as a commodity, the SEC has not made an official assertion confirming its standing. The uncertainty has fueled hypothesis amongst traders and analysts.

Has US SEC Labelled XRP As Commodity?

On twelfth February 2025, the US SEC acknowledged a number of functions for ETFs based mostly on varied cryptocurrencies, together with XRP (from Grayscale and 21Shares). This acknowledgment aligns XRP with Bitcoin and Ethereum, that are extensively considered as commodities. Nevertheless, the SEC didn’t explicitly verify whether or not XRP itself falls below the identical class.

Eleanor Terrett, a crypto journalist, famous in an X post that the US SEC is at present reviewing a number of digital asset ETFs, together with these tied to XRP, Solana (SOL), and Dogecoin (DOGE). She acknowledged,

“They’ve acknowledged that issuers are making use of for a product that classifies XRP as a commodity asset inside a securities wrapper.” Whereas this implies a shift in regulatory stance, the SEC has but to offer last readability. Ealier this week, authorized professional Jeremy Hogan clarified that the Ripple vs SEC lawsuit could be very unlikely to have an effect on the XRP ETF approval procedure.

Ripple’s Lawsuit and Courtroom Ruling on XRP

Ripple Labs has been engaged in a long-standing authorized dispute with the SEC over whether or not XRP needs to be categorised as a safety. In a key ruling, a U.S. choose decided that XRP was not a safety in secondary market transactions.

Nevertheless, the court docket additionally dominated that Ripple’s direct institutional gross sales of XRP had been unregistered securities choices.

The SEC has paused additional litigation as its crypto process power continues to judge the regulatory framework for digital belongings. Authorized consultants counsel that an enchantment stays a risk, which may prolong the uncertainty round XRP’s classification for years. Some analysts argue that if totally different courts attain various conclusions, the case could ultimately be reviewed by the U.S. Supreme Courtroom.

XRP Market Response and Buying and selling Exercise

Following the SEC’s acknowledgment of XRP ETFs, XRP’s buying and selling quantity surged by 30% inside the first hour of the announcement. On-chain data revealed a 29% increase in lively addresses interacting with the XRP ledger. Main exchanges, together with Binance and Coinbase, recorded heightened buying and selling exercise.

XRP’s worth additionally skilled a pointy improve, reaching $2.84 on fifteenth February 2025, a 22% rise over 5 consecutive buying and selling days.

Analysts counsel that if XRP maintains momentum and surpasses the $2.80 resistance stage, it may transfer towards $3.00 or increased. Nevertheless, if promoting strain will increase, the worth could consolidate between $2.60 and $2.80. Nevertheless, ought to the bull run persists and breasches the $3.40 resistance, in response to analysts Egrag crypto, XRP worth could exams new all time highs of $15 to $17.

Crypto Group Awaits Regulatory Certainty

The continued debate over XRP’s classification has led to blended reactions inside the crypto group. Some imagine that the SEC’s acknowledgment of XRP ETFs suggests a step towards recognizing it as a commodity, whereas others argue that the shortage of express affirmation leaves room for additional regulatory scrutiny.

Subsequently, the US SEC’s strategy to XRP can also influence ongoing circumstances towards main crypto exchanges, equivalent to Binance and Coinbase, whose cases have already been paused by the crypto taskforce for 60 and 28 days respectively.

These exchanges have confronted regulatory challenges for allegedly providing unregistered securities. If XRP is formally categorised as a commodity, it may affect how comparable belongings are regulated sooner or later and in the end push XRP price above $110.