A lot of information is manipulated or presented in a way that benefits certain interests, and ordinary people end up caught in this game. Cryptocurrencies, including XRP, are a clear example—some say they are the future of finance, while others consider them a manipulation scheme.
XRP is not a security, a financial instrument, or a commodity in the traditional sense used in financial markets. Its legal status has been a subject of debate, especially in the United States, where the Securities and Exchange Commission (SEC) argued that XRP is a security, while Ripple Labs maintained that XRP is a digital currency (cryptocurrency), similar to Bitcoin or Ethereum.
How can XRP be classified?
1. It is not a security – In a lawsuit filed by the SEC, a U.S. court ruled in 2023 that programmatic sales of XRP on secondary markets do not constitute the sale of securities.
2. It is not a traditional commodity – While cryptocurrencies like Bitcoin are sometimes considered commodities by the Commodity Futures Trading Commission (CFTC), XRP is not classified in the same way.
3. It is a digital currency (cryptocurrency) – XRP is primarily used for fast value transfers and is listed on many cryptocurrency exchanges.
Thus, XRP is best defined as a cryptocurrency used for payments and financial transfers, rather than being classified strictly as a security or a commodity.
