US SEC Classifies XRP as Digital Commodity

The US Securities and Exchange Commission (SEC) has made a significant move in the world of cryptocurrency by classifying XRP as a digital commodity. This classification is outlined in Interpretive Release No. 33-11412, which defines XRP alongside assets like Bitcoin, Ether, Solana, and Stellar as exempt from securities laws.

The release emphasizes the Howey Test, distinguishing initial offerings from mature, decentralized secondary markets. This framework shift recognizes that digital assets can evolve from potential securities to commodities as networks decentralize and buyer reliance on promoters diminishes.

Despite this regulatory win, XRP's price has continued to slide, dropping 40% from January highs near $2.40. Whale selling pressure dominates, with an estimated $6 billion cashed out since the $3.65 peak in July 2025. The price of XRP is currently trading around $1.44.

The SEC's move benefits Ripple indirectly by clarifying XRP's status, aiding RippleNet and payment infrastructure. European investors are eyeing opportunities for regulatory alignment, with potential ETP listings in Germany or Switzerland on the horizon.