Policy March 18, 2026

SEC Declares XRP a Digital Commodity and Admits a Decade of Crypto Failure

For several years, XRP sat in a strange regulatory limbo as questions around whether the altcoin is not a security surfaced. Meanwhile, it was traded all across the globe, built real use cases, but was heavily scrutinized and never clearly defined. This uncertainty shaped how institutions approached it and how investors priced risk. But the entire market saw a huge shift through the Securities and Exchange Commission’s (SEC) latest filing.

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SEC Groups XRP With Bitcoin Under Digital Commodities in Landmark Framework

SEC crypto taxonomy — Source: Punchbowl news

Speaking at the DC Blockchain Summit, SEC Chair Paul Atkins said the agency’s lack of clarity on crypto had stretched on for more than a decade. A few hours later, the SEC and the CFTC released a 68-page joint framework that classifies XRP along with Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other assets as digital commodities.

The latest update moves beyond just one classification. The SEC’s regulatory framework, developed with CFTC, splits crypto into five categories. This includes digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.

SEC Chair Paul Atkins said,

“Today, I am pleased to announce that the SEC’s persistent failure to provide clarity on this question is over. [..]It’s way past time for us to stop diagnosing the problem and start delivering the solution. We’re not the ‘securities and everything commission’ anymore.”

After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws.

This is what regulatory agencies are supposed to do: draw clear lines in clear terms. https://t.co/wij5cA7N2i
— Paul Atkins (@SECPaulSAtkins) March 17, 2026

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XRP’s digital commodity designation given by the SEC brings the asset into a defined regulatory bucket. It also boosts the long-held argument that XRP is not a security.

SEC’s new framework lays out a clearer crypto taxonomy. It focuses on how an asset works rather than how it was sold years ago. Regulators look at network activity, user demand, and how value is formed in the market. For XRP, the focus is on its use case within the network and how it trades openly.

In addition, the SEC’s XRP commodity ruling also lines up with earlier court decisions. In 2023, a US judge found that XRP itself was not a security, especially in secondary market trading. The latest guidance highlights a notable shift, with the SEC and CFTC’s crypto responsibilities more clearly defined.

For XRP, the immediate impact is clarity that had been missing for years. The latest classification could lure in more interest from retail and institutional investors. Several could follow the footsteps of Goldman Sachs and invest in the XRP network. More recently, Grayscale’s head of research, Zach Pandl, noted how clearer regulatory conditions could lead to the repricing of the token.

How Did XRP React?

Amidst this, the price of XRP saw a slight uptick. At press time, the asset was trading at $1.52. But earlier today, XRP managed to rise to a high of $1.54 from a low of $1.50.