SEC Declares XRP as Digital Commodity, Ripple CLO Responds

TLDR

• The U.S. SEC has categorized XRP as a digital commodity under a new joint guidance developed in partnership with the CFTC.
• The revised regulatory framework groups XRP in the same category as Bitcoin, Ethereum, Cardano, and Dogecoin.
• Ripple CLO Stuart Alderoty noted the decision validates that XRP never qualified as a security at any point.
• The SEC stated digital commodities draw their value from underlying network functionality and broader market supply and demand dynamics.
• An earlier federal court ruling had already concluded that XRP is not inherently a security by nature.

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(SeaPRwire) –   The U.S. Securities and Exchange Commission has officially categorized $XRP as a digital commodity. The regulator issued this clarification via a joint guidance document published alongside the U.S. Commodity Futures Trading Commission. Ripple Chief Legal Officer Stuart Alderoty stated the decision confirms the long-held position of the company that $XRP never met the criteria to be classified as a security.

SEC Classifies XRP as Digital Commodity

The SEC and the CFTC released a joint guidance to clarify federal oversight of cryptocurrency assets. The two agencies rolled out a structured classification system covering digital commodities, securities, and stablecoins. Within this framework, regulators designated $XRP as a digital commodity.

The guidance notes that a digital commodity derives value from its network functionality and prevailing market supply and demand conditions. It explains that assets of this type do not rely on profit expectations tied to the efforts of a managerial team. The guidance also lays out how securities laws apply to common crypto activities including staking, airdrops, and token wrapping.

The SEC stated that the classification of any asset may evolve over time based on relevant facts and surrounding circumstances. Even so, regulators clearly positioned $XRP outside the legal definition of a security. The agencies noted the framework is designed to deliver clear guidance for all market participants.

Regulators also listed other tokens under the digital commodity category. These include Bitcoin, Ethereum, Cardano, and Dogecoin. This classification aligns $XRP with these widely recognized, established crypto assets.

Ripple CLO Reacts as SEC Reaffirms XRP Status

Ripple CLO Stuart Alderoty issued a public response to the SEC’s official clarification.

He wrote on X, “We always knew $XRP wasn’t a security – and now the @SECGov has made clear what it is: a digital commodity.” He thanked the SEC’s Crypto Task Force for delivering regulatory clarity.

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

Alderoty said the clarification aligns with Ripple’s consistent legal stance throughout its regulatory disputes. He stated that the company has long maintained that $XRP does not meet the legal definition of a security. His remarks follow years of back-and-forth in regulatory and legal proceedings.

The SEC previously filed a lawsuit against Ripple over alleged unregistered securities sales involving $XRP. The litigation dragged on for several years and cost Ripple more than $150 million in legal expenses. A federal court later ruled that $XRP as an asset is not inherently a security.

Judge Analisa Torres issued that ruling in the U.S. District Court for the Southern District of New York. The court determined that certain programmatic sales of the token did not constitute securities transactions. The SEC later reached a settlement agreement with Ripple based on those findings.

Despite the earlier court ruling, lingering questions about $XRP’s broader official classification remained. The new SEC joint interpretation directly addresses that unresolved issue. Regulators now officially classify $XRP as a digital commodity under U.S. federal law.