16th February 2025 – (New York) Eleanor Terrett, a well-known financial journalist, recently highlighted the ongoing debate surrounding XRP’s regulatory status. In a tweet yesterday, she pointed to the U.S. Securities and Exchange Commission’s (SEC) acknowledgement of XRP-related Exchange Traded Funds (ETFs), which has sparked speculation about whether XRP could be classified as a commodity. Although the SEC has not explicitly stated XRP’s status, Terrett emphasised the critical need for regulatory clarity to help market participants make informed trading decisions.
The SEC’s acknowledgement of XRP ETFs occurred on 12th February, 2025, when the agency issued a statement referencing these ETFs within a regulatory context. However, the statement stopped short of confirming XRP’s classification as a commodity. This ambiguity has led to heightened speculation and discussions within the crypto community. The uncertainty has had a significant impact on traders’ perceptions of XRP, influencing trading strategies as investors await more definitive guidance from the SEC.
The market’s reaction to the SEC’s acknowledgement was immediate and notable. Trading volumes for XRP surged by 30% within the first hour of the tweet, with 150 million XRP traded on major platforms such as Binance and Coinbase. On-chain activity also spiked, as active addresses interacting with XRP increased by 10%, with 250,000 new addresses recorded.
The SEC’s actions have broader implications for XRP and the cryptocurrency market. By acknowledging XRP ETFs without clarifying the token’s commodity status, the agency has left room for speculation, which has amplified market volatility. The 4.5% price gain in the XRP/USD pair and the concurrent rise in trading volumes reflect a bullish sentiment among investors, albeit one clouded by regulatory uncertainty.