Ripple and the XRPArmy have achieved a major milestone, earning definitive recognition.
In a historic move, the SEC has resolved the long-running debate over XRP’s regulatory status, officially categorizing the fourth-largest token as a digital commodity.
XRP Officially Recognized as a Digital Commodity by SEC
On March 17, the XRP token, closely associated with Ripple, was officially classified as a digital commodity in a landmark joint statement by the U.S. Securities and Exchange Commission (SEC) and its sister agency, the Commodity Futures Trading Commission (CFTC). This ruling finally removes the “security” designation that had shadowed the token for years.
Stuart Alderoty, Ripple’s Chief Legal Officer, quickly took to the X social media platform to celebrate the milestone, praising the Crypto Task Force for providing the long-awaited clarity the market has been seeking.
“We always knew XRP wasn’t a security – and now the @SECGov has made clear what it is: a digital commodity,” Alderoty wrote.
“Rational Rules of The Road”
Under the updated framework, the SEC has established a clear taxonomy for crypto assets, categorizing them as digital commodities, securities, or stablecoins. Within this structure, XRP is explicitly recognized as a digital commodity, solidifying its status outside the security classification.
The guidance further clarifies that a digital commodity is a crypto asset whose value is driven by the utility of its underlying network and the dynamics of market supply and demand, rather than by anticipated profits linked to the efforts of a central management team.
The guidance also outlines the criteria under which a crypto asset might be considered an investment contract, noting that this classification can evolve over time.
Importantly, the document establishes “rational rules of the road” for routine activities on decentralized networks. It formally clarifies how federal securities laws apply to activities such as protocol mining, staking, airdrops, and the wrapping of non-securities.






Be the first to comment