Ripple Chief Legal Officer (CLO) Stuart Alderoty has welcomed new regulatory guidance from the U.S. SEC, which categorizes $XRP as a digital commodity.
In a landmark development, the SEC has settled the longstanding debate over the regulatory status of $XRP by clarifying that the fourth-biggest token is a digital commodity.
Key Points
- The U.S. SEC has officially categorized $XRP as a digital commodity, not a security.
- Its definition suggests that a digital commodity derives value from network functionality and market dynamics.
- Ripple’s CLO welcomed the classification, emphasizing that it aligns with the company’s longstanding stance on the token.
- Other major cryptocurrencies, including Bitcoin, Ethereum, Cardano, and Dogecoin, are also categorized as digital commodities.
SEC Names $XRP a Digital Commodity
The SEC, working alongside the U.S. CFTC, issued a joint interpretation to clarify how federal laws apply to crypto assets. As a result, regulators have taken a major step toward reducing uncertainty across the digital asset market.
Under the new framework, the SEC introduces a structured taxonomy that classifies crypto assets such as digital commodities, securities, and stablecoins. Within this system, $XRP is explicitly identified as a digital commodity rather than a security, reinforcing its distinct classification.
Moreover, the interpretation defines a digital commodity as a crypto asset whose value stems from the functionality of its underlying network and overall market supply and demand, not from expectations of profit tied to the managerial efforts of a central entity.
In addition, the guidance explains when a crypto asset may qualify as an investment contract and emphasizes that such a designation can change over time. It also outlines how securities laws apply to key activities such as staking, airdrops, and token wrapping, providing further clarity to market participants.
Ripple CLO Reacts
In response, Alderoty welcomed the development and emphasized that it validates Ripple’s longstanding position that $XRP is not a security.
Furthermore, he credited regulatory efforts, particularly from the SEC’s Crypto Task Force, for finally delivering the clarity that investors, innovators, and the broader market have sought for more than a decade.
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
SEC Reaffirms $XRP’s Non-Security Status
For years, $XRP’s regulatory status remained a major point of contention within the crypto industry. This uncertainty eventually led to a prolonged legal battle between Ripple and the SEC, which cost the company over $150 million.
However, the turning point came when a U.S. federal court, led by Analisa Torres, ruled that $XRP itself is not inherently a security. Although the SEC later settled its case with Ripple on this basis, broader questions about $XRP’s classification persisted.
Now, the latest SEC interpretation conclusively resolves that debate. By classifying $XRP as a digital commodity alongside assets like Bitcoin and Ethereum, regulators have aligned with prior judicial findings and Ripple’s initial stance on the token.