- SEC’s acknowledgment of XRP ETFs suggests growing acceptance but does not confirm XRP’s classification as a commodity.
- Legal uncertainty persists as the SEC pauses litigation, leaving XRP’s long-term regulatory status unresolved.
The U.S. Securities and Exchange Commission (SEC) has acknowledged multiple XRP-related ETF applications, sparking intense debate over whether XRP is now considered a commodity like Bitcoin and Ethereum.
Previously, CNF highlighted that Ripple’s legal battle with the SEC may end in its favor, boosting XRP’s market outlook. While this could be a significant game-changing moment for XRP, the SEC has yet to provide an official classification, leaving investors in suspense.
In response to claims that the SEC had formally labeled XRP as a commodity, Fox Business journalist Eleanor Terrett clarified in a tweet tread:
They have acknowledged that issuers are applying for a product that classifies XRP as a commodity asset within a securities wrapper (the securities wrapper is the ETF itself), the same as BTC and ETH.
Terrett emphasized that this does not equate to a definitive SEC ruling on XRP’s status, stating:
While it’s definitely notable that they’re not denying these products outright, I don’t think we’ll really know for sure what the SEC is thinking until they start engaging more on these applications.
She also pointed out that the SEC’s actions might be part of a broader strategy to avoid accusations of picking winners and losers among digital assets.
At the same time, the SEC has paused litigation related to XRP’s classification while its crypto task force works on regulatory clarity.
SEC’s Acknowledgment
On February 12, 2025, the SEC formally acknowledged ETF applications from Grayscale and 21Shares tied to XRP. This move aligns XRP with Bitcoin and Ethereum, both widely viewed as commodities by regulators. However, the SEC has not explicitly confirmed that XRP falls under the same category.
Ripple’s long-standing legal battle with the SEC has been a major point of contention in determining XRP’s status. While a judge ruled that XRP is not a security in secondary market transactions, Ripple’s institutional sales were deemed unregistered securities offerings.
The SEC has paused further litigation, with legal experts predicting that the case could be appealed and potentially reach the U.S. Supreme Court. If different courts issue conflicting rulings, XRP’s status may remain uncertain for years.
Market Reaction: XRP Price Surges
Following the SEC’s acknowledgment of XRP ETFs, trading volume surged 30% within an hour, with a 29% rise in active addresses on the XRP Ledger.
Analysts suggest that if XRP breaks the $3.40 resistance level, it could skyrocket to $15–$17 in a bull run. Some even speculate that long-term clarity could push XRP above $110.
As of now, Ripple (XRP) is trading at $2.68, reflecting a 3.86% decrease in the past day but a 12.32% surge over the past week. See the XRP price chart below.
