Is XRP a commodity or a security?

In the United States, XRP is currently treated as a digital commodity rather than a security. The SEC, joined by the CFTC, named XRP as an example of a digital commodity in an interpretation published on March 17, 2026. That reading follows years of litigation between the SEC and Ripple, the company most closely tied to XRP, as explained in what is XRP.

Is XRP a commodity or security?

Under current US agency guidance, XRP is a commodity. The 2026 interpretation sorts crypto assets into five groups: digital commodities, digital collectibles, digital tools, stablecoins and digital securities. It defines a digital commodity as a token whose value comes from the programmatic operation of a working crypto system and from supply and demand, rather than from profits expected from someone else's managerial work.

The main text lists 16 examples, among them bitcoin, ether, Solana, Cardano and XRP. The CFTC joined the release and said it would apply commodities law in line with it. The same approach to bitcoin is covered in is bitcoin a commodity.

What was the SEC vs Ripple ruling?

The SEC sued Ripple in December 2020, alleging that its XRP sales were unregistered securities offerings. On July 13, 2023, Judge Analisa Torres of the Southern District of New York split the question. According to a summary by law firm Ropes and Gray, she found that Ripple's direct sales to institutional buyers were investment contracts, because those buyers paid Ripple and expected profit from its efforts. Sales on exchanges, where buyers did not know they were dealing with Ripple, were not. Grants to employees and developers were not either, since no money was paid.

The judge also said XRP as a token was not itself a security. On August 7, 2025, the SEC and Ripple dropped their appeals, leaving in place a $125,035,150 penalty and an order barring Ripple from future registration violations.

Is XRP a security in any situation?

It can be part of one. The 2026 interpretation says a non-security token becomes subject to an investment contract when an issuer sells it by promising managerial work that buyers expect to profit from. In that case the deal, not the token, is the security. This is the same split the Ripple ruling drew between institutional and exchange sales, and it rests on the Howey test described in is crypto a security.

Is XRP a digital commodity in law?

Not by statute. The interpretation is the agencies' reading of existing law, so a court could disagree and a future commission could change it. The 2023 ruling came from a district court and does not bind other courts. Congress has considered writing a digital commodity category into law, but on September 15, 2026 a Senate vote to begin debate on H.R. 3633 failed 49 to 50, short of the 60 votes needed. Other countries classify XRP under their own rules.

Rules differ by country and change often. Check the regulator or a qualified professional for your own situation.