Ripple Chief Legal Officer Stuart Alderoty stated that XRP's regulatory and legal status in the United States remains established following years of litigation and federal agency guidance. Alderoty highlighted two key regulatory developments that form the foundation of Ripple's position on XRP's classification.
The first is a 2023 federal court ruling that established XRP itself is not a security. The ruling distinguished between XRP as an asset and certain transactions involving the token, finding that some institutional XRP sales constituted unregistered investment contracts. Ripple has consistently emphasized this distinction in arguing that XRP itself is not a security under the court's decision.
The second development came in March when the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint interpretation addressing how federal securities laws apply to crypto assets and related transactions. The interpretation, which took effect March 23, classified XRP as a digital commodity while maintaining the distinction between the token itself and transactions that could qualify as investment contracts under securities law.
Alderoty stated that the SEC and CFTC leadership understands the cryptocurrency markets and expressed expectations that both agencies will continue issuing rulemaking to provide clearer operating standards for digital asset markets.
The March SEC framework covers categories including digital commodities, digital collectibles, digital tools, stablecoins, and digital securities, applying to certain types of crypto assets and specific transactions involving them.
