XRP Classified as Digital Commodity in Joint SEC-CFTC Guidance

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued joint guidance that clarifies the classification of digital commodities, including XRP. According to this new framework, XRP is classified as a digital commodity when it functions independently of its issuer's managerial efforts and its value stems from network functionality and market forces.

This shift in classification aligns with court rulings and industry arguments that XRP's value is driven by market dynamics rather than issuer activity. The guidance reduces emphasis on enforcement disputes and establishes conditions for crypto assets to fall within or outside securities jurisdiction, providing a more defined regulatory path for market participants.