FOX Business Journalist Shares Opinion On SEC Classifying XRP As Commodity

In a recent post on X, Eleanor Terrett, a journalist at FOX Business, provided her analysis on the ongoing discussion regarding the U.S. Securities and Exchange Commission’s (SEC) stance on XRP in the context of exchange-traded fund (ETF) applications.

Terrett’s comments addressed speculation about whether the SEC’s acknowledgment of XRP ETFs implies that the agency now considers it a commodity.

SEC’s Acknowledgment vs. XRP Classification

According to Terrett, the SEC has acknowledged that issuers are applying for an ETF product that treats XRP as a commodity asset within a securities wrapper. This framework is consistent with how Bitcoin (BTC) and Ethereum (ETH) have been categorized in ETF applications.

However, she clarifies that this acknowledgment does not necessarily equate to the SEC explicitly classifying XRP as a commodity. Instead, it signals that issuers are proposing XRP-based ETF products under the same regulatory structure as Bitcoin and Ethereum.

Terrett also notes that the SEC has recently acknowledged ETFs tied to other digital assets, including Solana (SOL), Dogecoin (DOGE), and Cardano (ADA). This suggests that the Commission is willing to consider ETFs for cryptocurrencies that the previous SEC administration may have viewed as securities.

SEC Litigation and Regulatory Uncertainty

Another key point in Terrett’s analysis is the SEC’s approach to ongoing litigation related to digital assets. She highlights that the agency has paused certain legal proceedings while its crypto task force assesses the regulatory landscape. This move indicates that the SEC may be reconsidering its stance on the classification of various digital assets, including XRP.

This regulatory pause aligns with broader trends in the crypto industry, where multiple legal battles have shaped the classification of digital assets. Notably, in July 2023, a U.S. federal court ruled that XRP was not a security when sold on secondary markets. However, the SEC has continued to scrutinize the asset, leaving its definitive classification unresolved.

Avoiding the Appearance of Favoritism

Terrett also suggests that the SEC’s acknowledgment of these ETF applications may stem from a desire to avoid the perception of favoritism. By recognizing applications for multiple cryptocurrency-based ETFs, including assets that were previously considered securities, the SEC may be attempting to present a more neutral regulatory approach. This could be an effort to ensure consistency and avoid accusations of picking winners and losers within the digital asset industry.

What This Means for XRP and the Crypto Market

The SEC’s acknowledgment of XRP-related ETF applications is significant, as it indicates a willingness to consider XRP under a regulatory framework similar to that of Bitcoin and Ethereum. However, Terrett cautions against interpreting this as a definitive classification. Until the SEC engages more substantively with these applications, it remains uncertain how the agency ultimately views XRP.

The broader implication of these developments is that the SEC’s stance on cryptocurrency regulation is evolving. With the crypto task force actively reviewing various assets and legal challenges shaping regulatory interpretations, the classification of XRP and other cryptocurrencies remains subject to change.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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