TLDR
- Xaif’s claim on XRP as a commodity stems from Crypto.com’s CFTC event contract filing.
- Crypto.com’s February 2025 filing treats XRP as a commodity for derivative product purposes.
- The SEC vs. Ripple lawsuit has left XRP’s status as a security or commodity unresolved.
- CFTC’s potential role in regulating XRP as a commodity is under discussion amidst shifting views.
A recent claim by community figure Xaif has ignited speculation that XRP may be officially recognized as a commodity. The assertion stems from XRP’s mention as a crypto asset commodity in a filing related to a derivative product offered by Crypto.com.
However, a closer look at the document reveals that the description does not equate to an official declaration by the Commodity Futures Trading Commission (CFTC) on XRP’s regulatory status.
Crypto.com Application for XRP Event Contract
In February 2025, Crypto.com filed a request with the CFTC to certify its XRP Event Contract under the Commission’s rules. This application is part of a broader effort by the platform to create event contracts for various cryptocurrencies, similar to contracts for Bitcoin and Ethereum.
Specifically, the XRP Event Contract allows users to speculate on the asset’s price movement over short intervals, ranging from 20 minutes to two hours. The filing references XRP as a commodity for the purpose of the event contract, but it should be noted that this is a product description rather than an official regulatory ruling.
Despite the focus on XRP in the application, it does not mark an official shift in the asset’s regulatory classification. This filing simply reflects the nature of the financial product Crypto.com is offering, which is structured as a short-term swap contract. While this could influence how XRP is treated in specific derivative products, it doesn’t alter the asset’s broader regulatory status.
SEC vs. Ripple: The Ongoing Debate
The debate about whether XRP is a security or a commodity has been ongoing, largely driven by the legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). In the early stages of the case, the SEC argued that XRP should be classified as a security, which would subject it to stricter regulations. However, a federal judge dismissed this claim, ruling that XRP itself is not a security. Notably, the SEC chose not to challenge this part of the ruling on appeal, leaving the matter unresolved in terms of broader legal definitions.
This development shifted the focus to the role of regulatory bodies like the CFTC, which has traditionally overseen commodities. While the SEC has not officially classified XRP, the decision from the court raised questions about the potential regulatory oversight of XRP. The situation remains in flux, especially as the SEC’s stance on crypto assets evolves. Current SEC leadership under Paul Atkins has expressed the view that most cryptocurrencies, including XRP, are not securities, a position that diverges from previous SEC Chairman Gary Gensler’s interpretation.
CFTC’s Role in Cryptocurrency Regulation
Amid the ongoing debates between the SEC and Ripple, there is increasing recognition that the CFTC may take a more prominent role in regulating cryptocurrencies, especially those seen as commodities. The Presidential Working Group on Digital Assets recently suggested that the CFTC should oversee cryptocurrencies classified as commodities, which may include XRP if it is treated as a commodity in specific contexts, such as derivative contracts.
Despite this, the CFTC has not issued any official statement that defines XRP’s status outside the context of the Crypto.com filing. While the agency has traditionally handled commodities like oil and metals, the growing influence of digital assets in financial markets could lead to further discussions about the proper classification and regulation of cryptocurrencies. However, until there is more clarity from the CFTC or other regulatory bodies, XRP’s status remains subject to ongoing legal and regulatory interpretation.
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