Did the Ruling Affect the Classification of XRP as a Commodity or Currency?
The ruling did not definitively classify XRP as a commodity or a currency. The court only ruled on whether the specific transactions (institutional vs. programmatic sales) constituted an "investment contract" (a type of security).
By finding that programmatic sales were not investment contracts, it left the asset's underlying nature open. While the CFTC has asserted jurisdiction over some crypto assets as commodities, the court's ruling focused strictly on the SEC's investment contract claim, leaving the ultimate classification of XRP as a commodity or currency to future regulatory or judicial action.
Glossar
XRP
Asset ⎊ XRP is a digital asset native to the XRP Ledger, an open-source, decentralized blockchain technology developed to facilitate fast, low-cost cross-border payments and remittances.
DID
Attestation ⎊ Decentralized identifiers (DIDs) within cryptocurrency and financial derivatives represent a verifiable digital identity, moving beyond centralized authorities to establish trust through cryptographic proofs.
Currency
Definition ⎊ Currency, in this financial context, represents a medium of exchange, store of value, or unit of account, encompassing both fiat denominations and decentralized digital assets.
Programmatic Sales
Execution ⎊ Programmatic sales, within the context of cryptocurrency derivatives and options trading, represent the automated and rules-based allocation of liquidity across various order books and exchanges, driven by pre-defined algorithms and market conditions.
Investment Contract
Clause ⎊ The specific terms within an investment contract define the conditions for token vesting and potential clawbacks.