XRP Upgraded…US SEC Recognizes It Alongside Bitcoin and Ethereum!

▲ Bitcoin (BTC), Ethereum (ETH), XRP/ChatGPT generated image ©

XRP (Ripple) has effectively attained the same regulatory status as Bitcoin and Ethereum, elevating its position in the market by one level.

According to cryptocurrency media outlet Bitcoinist on May 2 (local time), the U.S. Securities and Exchange Commission (SEC) designated XRP as an 'eligible asset' alongside Bitcoin (BTC) and Ethereum (ETH) in a proposed rule change by the New York Stock Exchange (NYSE). This proposal stipulates that cryptocurrency ETFs must invest 80% of their Net Asset Value (NAV) in eligible assets.

This action reconfirms the 'Generic Listing Standard' approved by the SEC last year, which classifies certain cryptocurrencies as eligible assets to streamline the ETF approval process. This marks a change from the past Gary Gensler era, where only Bitcoin and Ethereum were considered non-securities and thus limited as eligible for ETF approval.

Amid this shift in SEC policy, XRP has also secured a clear regulatory interpretation classifying it as a commodity. The SEC, in collaboration with the U.S. Commodity Fatures Trading Commission (CFTC), defined XRP as a commodity alongside major cryptocurrencies in its token classification guidelines. This stance is highly likely to be codified into law through future U.S. cryptocurrency market structure legislation, such as the CLARITY Act.

This regulatory clarity, coupled with Judge Analisa Torres's ruling in the lawsuit with Ripple that XRP is not a security, has also influenced ETF approvals. The explanation is that with the SEC unable to consider XRP a security, an environment has been created where related ETF applications cannot be rejected on that ground.

Meanwhile, Brad Garlinghouse, CEO of Ripple, stated at the XRP Las Vegas conference that the current SEC regime has provided more regulatory clarity in one year than in the previous four years combined. He emphasized that Ripple remains the largest holder of XRP and has the most significant stake in its success. The current XRP price is approximately $1.38, showing an upward trend over the last 24 hours.

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