Ripple Says XRP Is Not a Security, Recognized as Digital Commodity

Ripple’s chief legal officer, Stuart Alderoty, reiterated that XRP is not classified as a security under U.S. law. He cited two key regulatory milestones that, together, define the token’s status.

2023 Federal Court Ruling

The 2023 decision distinguished XRP itself from certain institutional sales, finding that while some XRP transactions were unregistered investment contracts, the token itself does not constitute a security.

March SEC‑CFTC Joint Interpretation

In March, the Securities and Exchange Commission and the Commodity Futures Trading Commission issued a joint interpretation that formally identified XRP as a digital commodity. The agencies said the interpretation aligns the Commodity Exchange Act with the SEC’s framework for crypto assets.

Implications for Future Rulemaking

Alderoty expects both agencies to continue developing rules that clarify operating standards for digital assets. The SEC’s framework categorizes assets into digital commodities, collectibles, tools, stablecoins, and securities, providing a broader context for XRP’s classification.

Legislative Context

The Senate’s recent vote on the CLARITY Act failed to advance, leaving broader crypto‑market legislation unresolved. Alderoty emphasized that Ripple and XRP remain on “settled ground” based on the court ruling and the SEC‑CFTC interpretation.