$XRP A recent bipartisan legislative proposal released by the U.S. Senate Committee on Agriculture, Nutrition, and Forestry could shift the regulatory status of XRP and similar cryptocurrencies by placing them under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

The draft legislation would establish a clear regime for digital-asset spot markets and limit the role of the Securities and Exchange Commission (SEC), offering significant implications for the broader crypto industry.

👉Defining Digital Commodities and Oversight

Led by Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ), the proposed discussion draft aims to grant the CFTC authority over digital-commodity spot markets, while limiting the SEC’s oversight to securities. Under this model, what are currently labelled “major cryptocurrencies” could be explicitly classified as commodities.

The draft outlines a framework for trading platforms and intermediaries to register with the CFTC, and introduces protections such as customer-fund segregation, disclosure requirements, and restrictions on affiliated trading.

👉Implications for XRP and the Ripple Ecosystem

If enacted, the legislation would have direct relevance to Ripple and its XRP token, which were central to the company’s regulatory dispute with the SEC. Classifying XRP as a commodity would anchor its legal treatment under the Commodity Exchange Act, rather than securities laws.

This may ease listing decisions for U.S. exchanges, reduce regulatory uncertainty around institutional participation, and support products such as managed-account or prime-brokerage offerings.

Furthermore, the draft’s provisions for self-custody and non-custodial infrastructure suggest that software developers and node operators would not automatically be regulated as financial institutions, a detail that provides clarity for those building on the XRPL ecosystem.

The legislation arrives at a moment of important market dynamics. A recent report by CoinShares noted that investment products focused on digital assets recorded over $1 billion in outflows last week. In contrast, XRP was one of the few assets to register $28.2 million in inflows, bucking the broader trend.

Meanwhile, as trading venues prepare for the launch of spot XRP ETFs and regulatory agencies resume full operations following the U.S. government shutdown, the timing of legislative clarity could be pivotal. The bill, however, remains at the discussion-draft stage and will require negotiation, amendment, and passage before becoming law.

👉Why This Development Matters

For market participants, the draft bill signals a major step toward legally defining and stabilizing the regulatory environment for digital assets. By clarifying that tokens such as XRP may fall under commodity rather than securities classification, the legislation could reduce legal risk for issuers, exchanges, and institutional investors.

This regulatory clarity can increase confidence in listing decisions, ease the creation of new investment products, and mark a shift toward more structured oversight. For Ripple and its token ecosystem, the draft presents a scenario in which its long-standing position becomes codified in federal law, a transition from legal dispute toward potential legislative alignment.

Although the draft represents considerable progress, it is not yet final. The document is still labelled a “discussion draft,” meaning it is subject to change and requires additional stakeholder feedback, committee mark-ups, and eventual full-chamber votes.

The pace of passage will depend on the broader legislative calendar, agency readiness, and political dynamics surrounding digital-asset regulation. Observers believe that if the bill advances, the combined effect of institutional inflows, ETF launches, and regulatory certainty could significantly alter the trajectory for XRP and similar assets.

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