Crypto News Reputable source

XRP classified as a digital commodity by SEC and CFTC in March 2026, but classification is reversible without Congress

Overall sentiment: Neutral

Published Jul 17, 2026 · Retrieved Jul 17, 2026

law business finance technology politics

On March 17, 2026, SEC and CFTC issued a binding joint interpretive release classifying XRP as a digital commodity, ending seven years of legal ambiguity Newsworthy Reliable Neutral
The 68-page interpretive release categorizes digital assets into five groups, placing XRP with Bitcoin, Ether, and others as digital commodities not securities Relevant Reliable Neutral
The interpretation binds both agencies but is administrative, not statute or formal rule, making it reversible by future agency leadership without Congress Newsworthy Reliable Neutral
XRP’s commodity status rests on the XRP Ledger operating independently from Ripple’s managerial efforts, aligning with an inverted Howey test definition Newsworthy Reliable Neutral
The release does not supersede the Howey test; specific offerings of XRP can still be securities based on facts and circumstances Newsworthy Reliable Neutral
Formal rulemaking under SEC’s Regulation Crypto and the CLARITY Act could provide stronger, statutory classification, but both are currently stalled or pending review Relevant Reliable Neutral
The classification’s practical impact includes enabling funds to directly cite the release to support XRP’s non-security status and easing exchange listing risks Relevant Reliable Positive
Reclassification of XRP as a security by a future commission would require reversing recent 68-page reasoning and overcoming significant litigation and market reliance Relevant Reliable Neutral

Type: standard news · Analysis confidence: 95%

Used in syntheses