XRP Gains Commodity Status Backing in New Congress Report

TLDR

• A U.S. Congressional Research Service report confirms XRP as a digital commodity under the updated SEC framework.
• The SEC and CFTC issued joint guidance in March 2026, placing XRP alongside Bitcoin and Ethereum.
• The report explains that digital commodities gain value from network use and market demand.
• Regulators determine classification based on how assets are promoted and investor expectations.
• The SEC framework divides crypto assets into five categories including digital commodities and digital securities.

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U.S. lawmakers have reinforced XRP’s classification through a new legal analysis released this month. The report confirms alignment between federal agencies on crypto asset treatment. It also references court decisions that shaped how regulators assess token transactions.

XRP Classification Gains Clarity Under New U.S. Framework

The Congressional Research Service published its report on April 3, 2026, outlining updated crypto classifications. It confirms that regulators now place XRP in the digital commodity category. This aligns with earlier joint guidance issued by the SEC and CFTC in March 2026.

The report explains that digital commodities derive value from network use and market demand. It states that such assets do not depend on centralized managerial efforts for value growth. Therefore, regulators do not automatically treat them as securities under current frameworks.

The SEC’s updated system divides crypto assets into five defined categories. These include digital commodities, digital securities, digital tools, stablecoins, and collectibles. XRP appears under digital commodities alongside Bitcoin and Ethereum in this structure.

Officials stated that classification depends on how participants market and sell the asset. The report says, “Regulators assess investor expectations when determining securities status.” It adds that promotional activity remains central to classification decisions.

The document also explains that assets can shift categories over time. It notes that tokens may begin as securities but later transition based on usage changes. This approach focuses on real-world function rather than static definitions.

Ripple Case Outcome Shapes Regulatory Interpretation

The report highlights the SEC v. Ripple Labs case as a key legal reference. It explains that courts distinguished between primary token sales and secondary market transactions. This distinction continues to influence how agencies apply securities laws.

Judges ruled that some early XRP sales qualified as investment contracts under securities law. However, they determined that secondary trading did not meet the same criteria. The report states that this difference now informs enforcement strategies.

The CRS document notes that courts still disagree on certain interpretations. It explains that different rulings reflect ongoing legal development in crypto regulation. As a result, agencies continue refining their frameworks for consistency.

The SEC has adjusted its approach following recent legal outcomes and policy updates. The report states that the agency has reduced enforcement actions in some cases. It has also introduced clearer guidance to market participants.

Meanwhile, Congress continues drafting legislation to define agency roles in crypto oversight. Lawmakers aim to clarify how the SEC and CFTC share regulatory responsibilities. The report confirms that discussions remain active as of April 2026.

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