The US Securities and Exchange Commission (SEC) has made a significant decision regarding XRP's regulatory status. In a joint statement with the Commodity Futures Trading Commission (CFTC), the SEC has officially classified XRP as a digital commodity.
This move follows years of debate over whether XRP should be considered a security or a commodity. The updated framework establishes clear guidelines for crypto assets, categorizing them into three main categories: digital commodities, securities, and stablecoins.
XRP's classification as a digital commodity means that its value is driven by the utility of its underlying network and market supply and demand, rather than anticipated profits linked to central management efforts.