Ripple is again emphasizing that XRP stands on settled legal ground in the United States, even after the Senate failed to advance the CLARITY Act.
The key distinction is important: a 2023 federal court ruling found that $XRP itself is not a security, while certain institutional sales by Ripple were found to involve investment contracts. Programmatic sales of XRP on exchanges were not treated as securities transactions.
More recently, the SEC and CFTC’s 2026 joint interpretation identifies XRP as a “digital commodity.” The SEC’s own crypto-asset guidance also lists XRP among digital commodities.
Why this matters for XRP
Legal status: XRP is identified as a digital commodity under the 2026 regulatory framework.
Court precedent: The 2023 ruling remains an important part of XRP’s U.S. legal history.
Market structure: The failed CLARITY Act means broader statutory crypto-market rules remain unresolved.
Institutional access: Greater regulatory clarity can matter for exchanges, financial products and institutional participation.
Ripple itself currently describes XRP as having U.S. legal clarity and being classified as a digital commodity.
The important takeaway is that “XRP is not a security” does not mean every XRP transaction is automatically outside securities law. The legal treatment can depend on how the asset is sold and the circumstances surrounding the transaction.
XRP’s regulatory story has changed dramatically since 2020 — and the next chapter may depend on how U.S. regulators turn this framework into lasting rules.
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