SEC May Declare XRP a Commodity
Date: 2025-03-14 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Rumors about a possible change in the US Securities and Exchange Commission’s (SEC) position on XRP are spreading across the web. If this digital asset is reclassified from a security to a commodity, this could significantly affect its regulation. Ethereum has previously gone through a similar process.
A recent statement by Vermont regulators has added uncertainty to the crypto market. They announced the termination of a lawsuit against Coinbase, citing a new SEC working group dealing with cryptocurrency issues. In 2022, the authorities considered staking as a violation of securities laws, but have now changed their position. This move could play into Ripple’s hands, affecting the course of its case with the SEC.
The proceedings between Ripple and the SEC seem to be nearing completion. According to sources familiar with the situation, the company's representatives are actively negotiating to soften the terms of a possible agreement. In August, Ripple already faced fines of $125 million and restrictions on the sale of XRP to institutional investors. However, new circumstances may change the course of the case.
This indicates a possible revision of the regulator's position. Earlier, SEC Commissioner Hester Peirce, who heads the cryptocurrency working group, said that some digital assets may lose their status as securities. The agency has already changed the classification of several memecoins, and XRP may be next.
The SEC is also taking steps to improve relations with the Commodity Futures Trading Commission (CFTC), which regulates commodity markets in the United States. These agencies have long been debating the classification of cryptocurrencies, and the decision on XRP may become an important precedent.
If the SEC does abandon its claims against XRP, this asset will be assessed in terms of its functionality and use in decentralized networks, and not as an investment object. The same approach has been applied to ETH.
Ripple actively cooperates with international banks and payment services, providing instant transfers. This brings XRP closer to the category of goods, rather than investment instruments, which may be a decisive argument in its case.
An additional positive signal for Ripple was the recent decision of the Vermont authorities, who on March 13 dropped charges against Coinbase, citing changes in the SEC's regulatory policy.
If the trend of easing regulation continues, XRP may follow the path of Ethereum and finally leave the jurisdiction of securities laws.
