XRP News Today: XRP Classified as Commodity by CFTC Through Event Contracts

In a significant regulatory development, XRP has been officially classified as a commodity under the U.S. Commodity Futures Trading Commission (CFTC) through its inclusion in regulated Event Contracts. This move, confirmed through official filings and reported by crypto analyst Xaif, represents a major step toward institutional clarity and broader recognition of XRP within the U.S. financial system [1].

The CFTC’s Event Contracts now allow traders to speculate on XRP’s price movements within predefined time intervals—either every 2 hours or every 20 minutes—using fixed strike prices and payout structures. Each contract pays out between $0 and $100, depending on how the final settlement price aligns with the chosen strike price. The underlying price for these contracts is based on the spot XRP bid/ask midpoint reported by Lukka Inc. and labeled “U-XRP” [2].

This classification is a departure from the U.S. Securities and Exchange Commission’s (SEC) long-standing legal argument that XRP constitutes a security. By placing XRP within the CFTC’s regulated commodity framework, the asset joins an elite group of cryptocurrencies—such as Bitcoin and Ethereum—that benefit from clearer regulatory treatment. Analysts have highlighted that this shift reduces legal ambiguity and paves the way for increased institutional participation [3].

The inclusion of XRP in CFTC-regulated Event Contracts offers a structured and compliant mechanism for hedge funds, proprietary trading firms, and institutional investors to engage with the asset. These contracts function similarly to those used for traditional commodities such as oil, gold, and wheat, providing a regulated avenue for price exposure and risk management [4]. The development is also seen as a precursor to the potential introduction of CFTC-approved futures or options contracts based on XRP, which could further mature the asset’s financial ecosystem.

This regulatory advancement is particularly notable given the ongoing debates over crypto regulation in the U.S. The CFTC has been actively working to bring clarity to the space, including initiatives such as the Crypto Sprint. Ripple, the company behind XRP, has previously expressed concerns over draft legislation that fails to clearly define the roles of the SEC and CFTC, a situation that could lead to regulatory confusion [5].

The move has already garnered attention across industry platforms and social media, with analysts emphasizing its potential to enhance market liquidity and efficiency. Ripple’s continued engagement with U.S. lawmakers reflects the broader industry’s demand for a coherent and consistent regulatory framework that supports innovation without stifling growth [6].

As XRP solidifies its position as a commodity under the CFTC, it marks a turning point for the asset’s role in the financial markets. This development not only aligns XRP with the regulatory standards of Wall Street but also enhances its appeal to institutional investors seeking clear legal and operational parameters. The listing under CFTC Event Contracts represents a milestone in the ongoing evolution of cryptocurrency regulation in the United States [7].

Source:

[1] https://timestabloid.com/xrp-officially-listed-as-a-commodity-under-cftc-event-contracts/

[3] https://x.com/ChadSteingraber/status/1953424688647999781

[4] https://www.mitrade.com/insights/news/live-news/article-3-1011225-20250805

[5] https://www.mitrade.com/insights/news/live-news/article-3-1016982-20250806

[6] https://x.com/RizXRP/status/1953426051599573024

[7] https://www.cmegroup.com/markets/cryptocurrencies.html