XRP Begins Era as Commodity Under US Laws, Stuart Alderoty Reacts - U.Today

Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has reacted to the reclassification of some crypto assets, including XRP, as commodities, not securities. The reclassification, carried out by the U.S. Securities and Exchange Commission (SEC), officially labeled Solana (SOL), Cardano (ADA) and XRP as nonsecurity crypto assets.

Could commodity status boost XRP adoption?

In a post on his X page, Alderoty maintained Ripple “always knew that XRP was not a security.”

The Ripple CLO was one of the most vocal figures during the long legal battle with the U.S. SEC and has always insisted on challenging the regulatory body’s classification.

He acknowledged all those who stood firm with Ripple and expressed appreciation to the Crypto Task Force for ensuring clarity in the digital asset space. Alderoty noted that with the SEC now effectively agreeing that XRP is not a security, the asset faces less restrictive rules.

Notably, securities like stocks are strictly regulated by the SEC, while commodities like gold or oil are under the oversight of the U.S. Commodity Futures Trading Commission (CFTC).

The development implies that exchanges can list XRP and other crypto assets classified as commodities more easily. This is a big shift for crypto assets like XRP and could greatly impact adoption positively in the broader financial ecosystem.

Some users have also taken a swipe at former SEC Chair Gary Gensler for extending the Ripple lawsuit for nothing.

XRP price holds key support despite drop in trading volume

The new classification might lead to increased institutional confidence in XRP and potentially boost the price for assets like XRP, SOL, ADA and others.

As of this writing, XRP exchanges hands at $1.51, which represents a 1.19% decline in the last 24 hours. The coin had previously soared to an intraday peak of $1.54 before dipping slightly to its current price. Nevertheless, it is still trading above the $1.50 support level.

XRP’s trading volume has, however, slipped massively by 41.25% to $3.07 billion within the same time frame. Technical signals suggest the coin is overbought, as its Relative Strength Index (RSI) hit 73.23 after its weekly rally.