The cryptocurrency market is actively discussing the U.S. Securities and Exchange Commission’s (SEC) newest acknowledgment of XRP-related Exchange Traded Funds (ETFs).
While some imagine this alerts XRP’s classification as a commodity, the SEC has not made an official assertion confirming its standing. The uncertainty has fueled hypothesis amongst traders and analysts.
Has US SEC Labelled XRP As Commodity?
On twelfth February 2025, the US SEC acknowledged a number of functions for ETFs primarily based on numerous cryptocurrencies, together with XRP (from Grayscale and 21Shares). This acknowledgment aligns XRP with Bitcoin and Ethereum, that are extensively considered as commodities. However, the SEC didn’t explicitly affirm whether or not XRP itself falls underneath the identical class.
Eleanor Terrett, a crypto journalist, famous in an X post that the US SEC is at the moment reviewing a number of digital asset ETFs, together with these tied to XRP, Solana (SOL), and Dogecoin (DOGE). She said,
“They have acknowledged that issuers are applying for a product that classifies XRP as a commodity asset within a securities wrapper.” While this implies a shift in regulatory stance, the SEC has but to supply closing readability. Ealier this week, authorized knowledgeable Jeremy Hogan clarified that the Ripple vs SEC lawsuit may be very unlikely to have an effect on the XRP ETF approval procedure.
Ripple’s Lawsuit and Court Ruling on XRP
Ripple Labs has been engaged in a long-standing authorized dispute with the SEC over whether or not XRP ought to be labeled as a safety. In a key ruling, a U.S. choose decided that XRP was not a safety in secondary market transactions.
However, the courtroom additionally dominated that Ripple’s direct institutional gross sales of XRP have been unregistered securities choices.
The SEC has paused additional litigation as its crypto job drive continues to guage the regulatory framework for digital belongings. Legal consultants recommend that an enchantment stays a chance, which may lengthen the uncertainty round XRP’s classification for years. Some analysts argue that if totally different courts attain various conclusions, the case might finally be reviewed by the U.S. Supreme Court.
XRP Market Reaction and Trading Activity
Following the SEC’s acknowledgment of XRP ETFs, XRP’s buying and selling quantity surged by 30% throughout the first hour of the announcement. On-chain data revealed a 29% increase in energetic addresses interacting with the XRP ledger. Major exchanges, together with Binance and Coinbase, recorded heightened buying and selling exercise.
XRP’s value additionally skilled a pointy enhance, reaching $2.84 on fifteenth February 2025, a 22% rise over 5 consecutive buying and selling days.
Analysts recommend that if XRP maintains momentum and surpasses the $2.80 resistance degree, it may transfer towards $3.00 or larger. However, if promoting strain will increase, the worth might consolidate between $2.60 and $2.80. However, ought to the bull run persists and breasches the $3.40 resistance, in keeping with analysts Egrag crypto, XRP value might exams new all time highs of $15 to $17.
Crypto Community Awaits Regulatory Certainty
The ongoing debate over XRP’s classification has led to blended reactions throughout the crypto neighborhood. Some imagine that the SEC’s acknowledgment of XRP ETFs suggests a step towards recognizing it as a commodity, whereas others argue that the dearth of specific affirmation leaves room for additional regulatory scrutiny.
Subsequently, the US SEC’s method to XRP might also influence ongoing circumstances towards main crypto exchanges, reminiscent of Binance and Coinbase, whose cases have already been paused by the crypto taskforce for 60 and 28 days respectively.
These exchanges have confronted regulatory challenges for allegedly providing unregistered securities. If XRP is formally labeled as a commodity, it may affect how related belongings are regulated sooner or later and in the end push XRP price above $110.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Known for his incisive evaluation and insightful content material, he possesses a robust command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
Disclaimer: The offered content material might embrace the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty on your private monetary loss.
