TLDR
- The U.S. SEC has classified XRP as a digital commodity under a new joint interpretation with the CFTC.
- The updated framework places XRP in the same category as Bitcoin, Ethereum, Cardano, and Dogecoin.
- Ripple CLO Stuart Alderoty said the decision confirms that XRP was never a security.
- The SEC stated that digital commodities derive value from network functionality and market supply and demand.
- A prior federal court ruling had already determined that XRP is not inherently a security.
The U.S. Securities and Exchange Commission has classified $XRP as a digital commodity. The agency issued the clarification through a joint interpretation with the U.S. Commodity Futures Trading Commission. Ripple CLO Stuart Alderoty said the decision confirms the company’s long-held position that $XRP never qualified as a security.
SEC Classifies XRP as Digital Commodity
The SEC and the CFTC released a joint interpretation to clarify federal oversight of crypto assets. The agencies introduced a structured taxonomy covering digital commodities, securities, and stablecoins. Within this framework, regulators identified $XRP as a digital commodity.
The interpretation states that a digital commodity derives value from network functionality and market supply and demand. It explains that such assets do not rely on profit expectations tied to managerial efforts. The guidance also outlines how securities laws apply to staking, airdrops, and token wrapping.
The SEC stated that an asset’s classification may evolve based on facts and circumstances. However, regulators clearly placed $XRP outside the definition of a security. The agencies said the framework aims to provide clarity for market participants.
Regulators also listed other tokens under the digital commodity category. These include Bitcoin, Ethereum, Cardano, and Dogecoin. The classification aligns $XRP with these established crypto assets.
Ripple CLO Reacts as SEC Reaffirms XRP Status
Ripple CLO Stuart Alderoty responded publicly to the SEC’s clarification.
He wrote on X, “We always knew $XRP wasn’t a security – and now the @SECGov has made clear what it is: a digital commodity.” He thanked the SEC’s Crypto Task Force for delivering regulatory clarity.
We always knew XRP wasn't a security – and now the @SECGov has made clear what it is: a digital commodity. Grateful to the Crypto Task Force for working to deliver the clarity that markets, investors, and innovators have long deserved. https://t.co/jJ7QTUiJbJ
— Stuart Alderoty (@s_alderoty) March 18, 2026
Alderoty said the clarification reflects Ripple’s consistent legal stance. He stated that the company maintained that $XRP does not meet the legal definition of a security. His comments followed years of regulatory dispute.
The SEC previously sued Ripple over alleged unregistered securities sales involving $XRP. The litigation lasted several years and cost Ripple over $150 million in legal expenses. A federal court later ruled that $XRP itself is not inherently a security.
Judge Analisa Torres issued that ruling in the U.S. District Court for the Southern District of New York. The court determined that certain programmatic sales did not constitute securities transactions. The SEC later reached a settlement with Ripple based on those findings.
Despite the court ruling, questions about $XRP’s broader classification remained. The new SEC interpretation directly addresses that issue. Regulators now classify $XRP as a digital commodity under federal law.
