Is XRP a security or a commodity under United States rules as of October 2026?

The full answer

What does the SEC’s March 17, 2026 interpretation say about XRP?

The SEC’s interpretive release, dated March 17, 2026 and effective March 23, 2026, names XRP as one of 16 examples of digital commodities [1]. The list runs from Aptos (APT) to XRP and includes Bitcoin, Ether, Solana and Stellar [1].

The release states that digital commodities are not themselves securities [1]. Its reason: the U.S. Securities and Exchange Commission said in Release 33-11412, dated March 17, 2026, that a digital commodity does not have the economic characteristics of a security, and carries no right to passive yield or to future income, profits or assets of a business [1].

The SEC also explained why it picked these 16. As of the date of the release, each underlies a futures contract made available on a designated contract market overseen by the CFTC [1]. The release adds that a token does not need such a futures contract to be a digital commodity [1]. The SEC said it and its staff will administer the securities laws consistent with the interpretation, including in enforcement actions [1].

Does the CFTC treat XRP as a commodity?

The CFTC joined the SEC’s interpretation on March 17, 2026 [2]. In its press release that day, the CFTC said it and its staff will administer the Commodity Exchange Act consistent with the SEC’s interpretation, and that certain non-security crypto assets could meet the definition of “commodity” under that Act [2].

The SEC’s March 17, 2026 interpretation lists XRP among its examples of digital commodities, and the CFTC said in its press release that it joined the interpretation and will administer the Commodity Exchange Act consistently with it [4]. For the CFTC’s separate plans for retail trading, see how the CFTC is planning to regulate retail crypto commodity transactions. Reports of October 2026 CFTC proposals listing XRP in draft form had not been confirmed by a published CFTC text as of October 12, 2026.

Is the court judgment against Ripple still in force?

On August 7, 2025, the SEC filed a joint stipulation with Ripple, Bradley Garlinghouse and Christian Larsen. It dismissed the SEC’s appeal and Ripple’s cross-appeal in the Second Circuit and resolved the enforcement case [3].

The SEC’s Litigation Release No. 26369 of that date says the final judgment imposed a $125,035,150 civil penalty against Ripple [3]. 26369 of that date says the final judgment imposed a $125,035,150 civil penalty against Ripple [3]. It also imposed an injunction prohibiting Ripple from violating the registration provisions of the Securities Act of 1933 [3]. The SEC said that, following the dismissal, the final judgment will remain in effect [3]. The background is covered in whether the SEC vs Ripple case is over and how much Ripple had to pay the SEC.

Can XRP still be part of a securities transaction?

Yes, under the SEC’s own framework. The March 17, 2026 release says a non-security crypto asset can be offered and sold subject to an investment contract, which is a security [1]. It also says such an asset does not necessarily remain tied to that investment contract forever [1].

The interpretation does not supersede or replace the Howey test, which the SEC calls binding legal precedent [1]. The SEC said in the interpretation that the Commission may refine, revise, or expand upon it to provide further guidance [1]. That is the main limit on the answer: XRP’s listing comes from an agency’s current view, not from a statute or an appeals court ruling. The longer legal history sits in Is XRP a security?, and the supply side that critics point to when they ask how much XRP depends on one company is covered in how the XRP escrow works.

What has Ripple said about XRP’s status?

Ripple wrote on September 15, 2026 that the CLARITY Act failed to advance in the Senate after a critical vote that day [5]. In the same post, Ripple said it secured a victory in 2023 “establishing that XRP is not a security” [5]. It said its footing became firmer in March 2026, when the SEC and CFTC issued a joint interpretation naming XRP a digital commodity [5].

Ripple added that it is confident XRP’s status as a digital commodity will not change as SEC and CFTC rulemaking proceeds [5]. That is the company’s own view. What the bill’s failure means for XRP is covered in what happened to the CLARITY Act.