In a recent tweet, crypto researcher SMQKE highlighted the upcoming review of the Digital Asset Market Clarity (CLARITY) Act by the U.S. House Financial Services Committee on June 10. He pinpoints why the bill is vital for XRP and related cryptocurrencies.
The Act, introduced on May 29, seeks to shift regulatory oversight of most cryptocurrencies from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC) by classifying them as “digital commodities.” If passed, this legislation will significantly reshape crypto regulation, with possible implications for assets like XRP.
The CLARITY Act also mandates brokers to segregate customer funds and disclose any conflicts of interest, reinforcing investor protections while transitioning regulatory jurisdiction.
Market participants and legal observers, particularly those focused on XRP, which has long been at the center of regulatory ambiguity, closely watch its possible passage.
The Digital Asset Market Clarity Act, which will finally classify qualified cryptocurrencies as commodities, is set to be considered on June 10th by the House Financial Services Committee. ⏰
Remember, “XRP IS A RADICAL FORM OF COMMODITY MONEY”.🎯
XRP was once advertised as… pic.twitter.com/fCAne4Bhxl
— SMQKE (@SMQKEDQG) June 3, 2025
XRP’s Origins and Design Support Commodity Classification
In the same tweet, SMQKE shared two documented sources emphasizing XRP’s classification as a commodity. One of them, a published excerpt from 2013, describes XRP as “a radical form of commodity money” and further states that XRP “is like gold in your hands.”
The description highlights that XRP was designed to be the most liquid asset on the XRP Ledger. The excerpt also reiterates that XRP has no central issuer, cannot be frozen, and can be transferred between any two addresses, further distancing it from the characteristics of securities and reinforcing its commodity-like nature.
The other image attached to the tweet outlines the intent behind the CLARITY Act and reinforces that cryptocurrencies meeting certain criteria would be reclassified as commodities under the CFTC’s oversight. According to SMQKE, XRP fits this definition and should be treated accordingly under the proposed legislation.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Garlinghouse: XRP Exists Independently of Ripple
The regulatory case for XRP as a commodity has been further bolstered by statements from Ripple CEO Brad Garlinghouse. As reported in a previous article by Times Tabloid and recently resurfaced by crypto commentator Xaif, Garlinghouse emphasized that the XRP Ledger (XRPL) predates Ripple itself.
In the shared post, Garlinghouse is quoted stating, “Certainly, we are an interested party in the success of the XRP Ledger, for sure—we own a lot of XRP. However, it’s like saying Exxon owns a lot of oil. That doesn’t make oil a security. Oil, of course, is classified as a commodity.”
Garlinghouse’s comparison directly addresses one of the central legal debates around XRP—whether its relationship with Ripple, the company, renders it a security. His assertion that XRP exists as a neutral digital asset, much like a natural resource, lends further weight to its treatment as a commodity. This position is consistent with arguments made during Ripple’s ongoing legal battles with the SEC.
Implications for XRP’s Regulatory Future
The timing of this debate is critical. The CLARITY Act, by proposing a legislative framework that distinguishes digital assets based on their structure and use, could help end years of legal and regulatory confusion surrounding XRP.
SMQKE’s tweet aligns with a growing narrative in the crypto space that XRP, due to its decentralized origins, design as a medium of exchange, and absence of issuer-based control, belongs in the category of digital commodities.
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 advised to conduct thorough 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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