- CFTC Events Contract describes XRP as crypto asset commodity for derivatives
- Filing enables 20-minute and 2-hour price speculation swaps launched Feb 14
- Document doesn’t constitute official CFTC classification or regulatory status
A CFTC filing has described XRP as a “crypto asset commodity” within an Events Contract product, generating discussion within the XRP community about the token’s regulatory classification.
Community figure Xaif highlighted the document, suggesting it indicates official commodity status, though the filing relates specifically to a derivatives product rather than formal regulatory designation.
The contract launched February 14 as a swap mechanism allowing users to speculate on XRP price movements over 20-minute or two-hour timeframes. The commodity description appears within the product documentation but doesn’t establish broader regulatory precedent for XRP’s classification.
Filing Similar to Asset Manager ETF Applications
The CFTC filing’s treatment of XRP mirrors approaches used by asset managers like Bitwise in spot ETF applications, where XRP was characterized as a commodity-based trust.
These product-specific descriptions don’t create binding regulatory determinations but enable specific financial product development.
The derivatives contract’s commodity classification serves operational purposes for the swap product rather than establishing XRP’s legal status across all regulatory contexts. Similar language appears in various financial products without creating comprehensive regulatory classifications.
Neither the SEC nor CFTC has issued specific determinations about XRP’s regulatory status following the conclusion of the SEC vs. Ripple lawsuit.
The agencies maintain separate jurisdictional authority over securities and commodities respectively.
SEC Lawsuit Resolution Leaves Classification Questions
The SEC vs. Ripple case concluded with a federal judge ruling that XRP is not inherently a security, though the commission never challenged this specific determination despite appealing other aspects.
The ruling addressed XRP’s nature rather than establishing commodity classification.
Current SEC leadership under Paul Atkins has indicated most crypto assets shouldn’t be considered securities, departing from the previous Gary Gensler administration’s approach. This shift in perspective could influence future regulatory treatment of digital assets including XRP.
The Presidential Working Group on Digital Assets recently suggested CFTC oversight for cryptocurrencies classified as commodities. This recommendation could formalize commodity jurisdiction for tokens like Ripple coin if implemented through regulatory action.
