XRP will earn product classifications on submission of CFTC event agreements

• It is listed as a product in a CFTC event agreement under Rule 13.43 specifications.
• The court’s ruling confirmed that XRP is not security despite previous SEC claims.
• The classification increases XRP derivatives and matches Bitcoin and Ethereum.

XRP is classified as a commodity in the newly listed US Commodity Futures Trading Commission (CFTC) event agreements, marking the major regulatory developments of cryptocurrencies. The classification appears in the official submission under Rule 13.43 of the Exchange Rule Book and details the specifications of the XRP Cryptocurrency Event Agreement. Though it is not a formal declaration from the CFTC regarding the overall regulatory situation for XRP, the move has the tokens lined up for Bitcoin and Ethereum, which are treated as commodities in a similar context.

The filing provides an overview of the contract scope and identifies XRP as the underlying asset for a new class of event contracts. Additionally, the contract was quoted in US dollars Lukka, Inc. This refers to the Spot XRP Bid/Ask Midpoint prices offered by.

For intraday trading, the contract has two forms: 2 hours and 20 minutes each. The initial expiration will take place at 1am ET on Saturday and 11:20pm Friday, respectively, with a final deadline of 4pm on the following Friday. The strike interval width is set to 0.01 for a two-hour contract and 0.004 for a 20-minute contract, with nine strike levels listed for each series.

Regulation context and legal background

The classification of XRP as a product of this filing occurs after years of legal uncertainty. The Securities and Exchange Commission (SEC) had claimed that XRP was unregistered security in that case to Ripple Labs. However, the federal court ruled that XRP itself is not security. This was not a decision the SEC did not overturn despite sueing other parts of the ruling.

Neither the SEC nor the CFTC have issued official statements defining the regulatory status of XRP. Treatment of XRP as a commodity mirror found in other financial instruments, such as product-based trusts referenced in Spot ETF applications.

Potential markets and institutional impacts

This filing is limited to derivative products listed on the exchange, but the fact that XRP is considered a product with the purpose of trading can affect market participation. This type of classification allows you to create regulated derivative equipment, such as XRP price futures and options.

This decision will be made further by changing regulatory attitudes. Paul Atkins, current head of the SEC, has already shown that the majority of crypto assets do not qualify as securities.