The CFTC Lists XRP and Stellar as Digital Commodities Alongside Bitcoin and Ethereum. Is XRP Officially Not a Security?

Classification and DesignationThe Commodity Futures Trading Commission (CFTC) has proposed new regulations that list XRP as a “digital commodity,” placing it alongside Bitcoin, Ethereum, and Solana, extending a joint SEC-CFTC designation made in March. A 2023 federal judge ruled Ripple's direct institutional XRP sales qualified as investment contracts, meaning some future sales could still face securities scrutiny. The CFTC proposals remain in draft form and could change after public comment, leaving XRP's trading rules unsettled until a final version is adopted.## Regulatory FrameworkThe CFTC has split its proposals into two parts. The first covers leveraged trading in the retail crypto market through licensed brokers, while the second allows crypto exchanges to register as designated contract markets. The SEC requires issuers to register securities and provide ongoing information, while the CFTC focuses on regulations governing how commodities are bought and sold. The CFTC’s new proposals would bring both the spot market and the derivatives market under its regulatory framework.## Debate Among XRP HoldersThe classification has sparked debate among XRP holders, who are questioning the asset’s status. XRP holders have been questioning the asset’s status since the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in December 2020. The CFTC’s new proposals do not change XRP’s commodity status; instead, they aim to add specific trading rules to a designation both agencies established earlier this year. The CFTC also considers this October list as examples rather than a comprehensive inventory, meaning more coins could potentially be classified in the future.