- US SEC’s acknowledgment of XRP ETFs has intensified speculation over whether XRP should be classified as a commodity.
- XRP’s price surged by 22%, reaching $2.84, following increased market activity and speculation surrounding its potential classification.
- Ripple’s lawsuit outcome and future regulatory decisions could shape XRP’s standing and influence crypto market regulations.
The U.S. Securities and Exchange Commission (SEC) has acknowledged multiple Exchange-Traded Fund (ETF) applications linked to XRP. Asset managers such as Grayscale and 21Shares submitted proposals, aligning XRP with Bitcoin and Ethereum, both widely regarded as commodities. However, the SEC has not explicitly stated whether XRP shares the same classification.
Crypto journalist Eleanor Terrett noted that the SEC’s acknowledgment indicates that issuers are positioning XRP as a commodity within an ETF framework. Legal expert Jeremy Hogan also suggested that the ongoing Ripple vs. SEC lawsuit will unlikely impact the ETF approval process. Despite this development, regulatory clarity remains uncertain.
Ripple’s Legal Battle and Regulatory Implications
Ripple Labs has been entangled in a long-standing lawsuit with the SEC regarding XRP’s classification. A court previously ruled that XRP is not a security in secondary market transactions but determined that direct institutional sales were unregistered securities offerings. The SEC has paused further litigation as its crypto task force reviews regulatory frameworks, leaving room for a potential appeal that could extend the uncertainty.
The XRP trading volume achieved a 30% increase after the SEC acknowledged XRP while the XRP ledger experienced a 29% boost in active addresses. The trading volumes on major exchanges Binance and Coinbase experienced significant growth after the announcement.
The price of XRP at $2.84 on February 15, 2025, marks a 22% growth since the start of the week. Mixed analysts predict XRP investment will experience price growth past its $2.80 resistance point toward $3.00 levels or above. An extended period of bullish market conditions might drive prices above $3.40 yet analysts expect this potential rise to extend up to $15-$17.
Regulatory Uncertainty and Market Outlook
The ongoing debate over XRP’s classification has created mixed reactions among investors. Some view the ETF acknowledgment as a step toward XRP’s recognition as a commodity, while others argue that the SEC’s lack of explicit confirmation leaves regulatory ambiguity.
Meanwhile, cases against Binance and Coinbase, paused by the SEC’s crypto task force, could be influenced by XRP’s regulatory outcome. If XRP is officially deemed a commodity, its classification could reshape crypto regulations and market dynamics.
