- A June 10 CLARITY Act vote could classify XRP as a commodity, shifting oversight from the SEC to the CFTC.
- XRP’s decentralized design and long-term commodity argument is gaining traction amid rising institutional support.
Discussions around XRP commodity status are gaining momentum again. As noted, the upcoming June 10 review of the Digital Asset Market Structure (CLARITY) Act by the U.S. House Financial Services Committee could set a significant precedent for how digital assets are defined and regulated across the country.
Committee to Decide if XRP Should Be Treated as a Commodity
The CLARITY Act, set for review next week, could mark a turning point for XRP. The legislation aims to distinguish between commodities and securities in the cryptocurrency sector clearly.
Previously, we covered that the company behind XRP Ledger, Ripple Labs, urged the SEC to stop applying outdated rules to crypto assets like XRP. If the CLARITY Act is passed, oversight of digital assets like XRP could shift from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).
This change would move XRP closer to being officially classified as a commodity and could have wide effects. The bill proposes that brokers dealing in digital assets must separate customer funds. If enforced, that change could increase investor confidence and strengthen the safety of crypto investments.
The commodity label would provide legal clarity for XRP, which may reduce market instability and calm volatility. Notably, XRP’s technical design strengthens the argument for its commodity status. The coin operates without a central issuer, cannot be frozen by authorities, and allows unrestricted transfers.
These features align more closely with commodities than securities, making XRP a clear case study as lawmakers examine digital asset classification.
Meanwhile, as mentioned in our previous news brief, VivoPower International has announced that it has raised $121 million in a private share placement to launch an XRP treasury strategy. ViVoPower is one of the growing list of firms that now see the coin as a viable commodity.
Documents and Industry Voices Back XRP’s Commodity Argument
Support for XRP commodity status is not new. Archived documents from as far back as 2013 describe XRP as a radical form of commodity money, likening it to holding gold. This long-standing view is gaining new relevance as lawmakers prepare to vote on the CLARITY Act.
Ripple CEO Brad Garlinghouse also backed the argument by comparing XRP to oil. “We own a lot of XRP,” he said, “but it is no different from Exxon owning oil.”
According to Garlinghouse, this does not make the asset a security. His remarks have since been cited in legal and policy discussions as evidence of how XRP should be viewed in the financial space.
If the vote moves in XRP’s favor, it could signal the beginning of more consistent regulation across the digital asset market. It may also attract stronger institutional interest, providing a steadier long-term growth and investment base.
In light of recent rumors around Ripple’s $4 billion to $5 billion acquisition plan of Circle, CNF highlighted recently that Garlinghouse pointed out that Ripple had not put forward a proposal with such a huge valuation range. He also confirmed that Ripple was not actively talking about buying the entirety of Circle.
Still, the recent fallout between President Trump and Elon Musk caused the XRP price to decline to a crucial support level of $2.0. However, XRP is bouncing back, with MarketCap data showing it is trading at $2.18, up 1.53%.
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