US Senate Bill Proposes CFTC Oversight, Classifying XRP as Commodity
A bipartisan draft bill from the U.S. Senate Committee on Agriculture aims to establish a clear regulatory framework for digital assets. Sponsored by Senators John Boozman and Cory Booker, the proposal grants the Commodity Futures Trading Commission (CFTC) authority over “digital commodity” spot markets, separating them from Securities and Exchange Commission (SEC) jurisdiction. If passed, XRP would be officially classified as a commodity under CFTC oversight. This codifies legal clarity after a 2023 court ruling in Ripple’s favor, allowing U.S. exchanges to list XRP without uncertainty and paving the way for institutional products like Ripple Prime.
The draft also protects self-custody rights and confirms that non-custodial software developers and node operators are not financial institutions. The move coincides with XRP attracting $28.2 million in inflows last week, bucking the broader outflow trend in Bitcoin (BTC) and Ethereum (ETH). It also follows the addition of five spot XRP ETFs to the DTCC roster, clearing a final hurdle before trading. While the bill requires further negotiation and congressional approval, it represents the most concrete effort to date to resolve asset classification and could boost market confidence in XRP.
Bullish
Classifying XRP as a commodity under CFTC oversight provides long-sought legal clarity. This removes listing uncertainty and encourages institutional adoption through products like spot ETFs and Ripple Prime. Historical precedents—such as the SEC’s failed attempt to classify Ripple’s token as a security—show that regulatory certainty often triggers positive price action. In the short term, traders may react with increased buying ahead of potential ETF launches. Over the long term, clear CFTC jurisdiction could attract new capital and foster market stability for XRP.