Ripple CLO Hails SEC Shift As XRP Gains From Proposed Crypto Safe Harbor ⋆ ZyCrypto

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XRP traded on a softer note this week as Bitcoin slipped below $72,000, pressured by rising oil prices and renewed inflation concerns.

Despite the short-term weakness, XRP remains up nearly 4% over the past week, outperforming the broader crypto market, which has been weighed down by heavy selling across major assets.

The mixed price action comes amid fresh regulatory clarity following a joint interpretation by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. The guidance outlines how digital assets are classified under federal securities and commodities laws, providing renewed confidence for market participants.

Moreover, the CFTC committed to aligning its oversight under the Commodity Exchange Act with the SEC’s interpretation. In doing so, it recognizes that certain non-security digital assets, including XRP, ETH, ADA, and DOGE, may meet the legal definition of a commodity. 

“For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under the federal securities and commodity laws,” CFTC Chair Michael Selig stated Monday.

“With today’s interpretation, the wait is over. Chairman Atkins and I are committed to fostering a regulatory environment that allows the crypto industry to flourish in the United States with clear and rational rules of the road,” he added.

Additionally, the SEC introduced a comprehensive taxonomy for digital assets, clearly defining categories such as digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.

The SEC also clarified how non-security crypto assets, those not considered securities, may become subject to or cease being part of an investment contract.

Specific activities, such as airdrops, protocol mining, staking, and the wrapping of non-security tokens, are addressed to ensure that market participants clearly understand which regulations apply.

Stuart Alderoty, Chief Legal Officer at Ripple, welcomed the regulatory clarification, reiterating that the firm has long maintained that XRP should be classified as a commodity rather than a security.

“We always knew XRP wasn’t a security, and now the U.S. Securities and Exchange Commission has clarified what it is, a digital commodity,” he said. “We’re grateful to the Crypto Task Force for delivering the clarity that markets, investors, and innovators have long deserved.”

That said, this classification could signal a more secure regulatory landscape, paving the way for greater institutional participation and stronger trading confidence. It may also support long-term price growth across the broader crypto market, especially if the anticipated CLARITY Act is ultimately passed.

At press time, XRP was trading at $1.44, reflecting a 0.48% rise in the past 24 hours.