The U.S. Securities and Exchange Commission (SEC) has acknowledged applications for financial products that classify XRP as a commodity asset within a securities wrapper.

This has led to excitement in the XRP community. Some suggest the agency now recognizes XRP as a commodity as opposed to its earlier classification as a security.

The U.S. Securities and Exchange Commission (SEC) has acknowledged applications for financial products that classify XRP as a commodity asset within a securities wrapper. This has led to excitement in the XRP community, with some suggesting that the agency now recognizes XRP as a commodity as opposed to its earlier classification as a security.

However, FOX Business journalist Eleanor Terrett has clarified the SEC’s position following online speculation about an official classification.

In a post on Twitter on December 22, Terrett stated that the SEC has acknowledged applications for a product that treats XRP like a commodity asset when wrapped in securities, just like BTC and ETH. She added that just because the SEC has accepted similar applications for Bitcoin and Ethereum ETFs, it doesn’t automatically mean a formal regulatory stance has been decided.

This acknowledgment happens as the SEC is still in the middle of discussions about cryptocurrency regulation. The agency has also recognized applications for exchange-traded funds (ETFs) tied to other digital assets like Solana (SOL) and Dogecoin (DOGE), which used to be thought of as securities. This shift suggests the SEC might be rethinking how it categorizes digital assets.

Despite this recognition, the SEC has yet to provide clear guidance on whether it considers XRP a commodity outside of ETF filings.

On the other hand, the agency has paused lawsuits related to crypto asset classification, while its internal crypto task force is taking a look at the broader regulatory system.

“The SEC is acknowledging everything because this commission doesn’t want to be seen as picking winners and losers,” Terrett noted. While the agency has not rejected these applications outright, its final stance remains unclear.

However, she suggests that more definitive regulatory clarity will come only when the SEC actively engages with these applications beyond initial acknowledgments.

This development comes after years of legal battles between the SEC and Ripple. The SEC previously claimed that Ripple conducted unregistered securities offerings, a claim that has been challenged in the court proceedings.

This latest nod to XRP’s commodity status in ETF applications could influence future regulatory decisions.