XRP Gains Regulatory Clarity as SEC and CFTC Shift Focus to Function-Based Oversight

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued new guidance aimed at clarifying the regulatory landscape for crypto assets. The joint interpretation defines digital commodities as assets whose value is driven by network functionality and market forces, rather than managerial efforts.

XRP has been explicitly included among these digital commodities, aligning it with major crypto assets like Bitcoin (BTC) and Ether (ETH). This classification reduces legal uncertainty and supports broader market participation and institutional access.

The new guidance establishes conditions under which crypto assets fall inside or outside securities jurisdiction. Regulators have moved away from enforcement-led actions and towards a function-based oversight framework, which could reshape how investors evaluate risk, value drivers, and long-term market positioning.