President Donald Trump’s recent activity on his social media platform, Truth, has sent ripples through the crypto market. He shared an article titled “Donald Trump Effect Bumps Ripple Labs U.S. Deals, XRP Gains,” which has seemingly boosted investor confidence in XRP.
XRP 24-Hour Chart (Source: Coinbase)
XRP Price Surges Against Market Trends
Following Trump’s post on Truth, XRP saw its value rise by more than 6% to $2.72, despite the broader market moving sideways. This is one of the many examples of the impact of high-profile endorsements on cryptocurrency valuations.
Back in 2021, Elon Musk also tweeted in support of Dogecoin, which led to a rapid price surge. Musk’s tweets have usually been known to influence the prices of cryptocurrencies.
SEC Filings Stir Commodity Conversations
The U.S. Securities and Exchange Commission (SEC) has also been busy with new filings. They have acknowledged a Spot XRP ETF application by Cboe/Bitwise and other filings from Cboe BZX Exchange for Canary Capital and Nasdaq for CoinShares.
This move by the SEC, which calls for public comment within 21 days, could either lead to approval, rejection, or further investigation of these ETFs after an initial 45-day period.
The language used in these filings is especially intriguing, considering the ongoing legal battle between the SEC and Ripple. Though a federal judge recently clarified that XRP is not a security—a decision the SEC will not challenge—the implications for ETF approvals remain unclear.
Is XRP Being Positioned as a Commodity?
The phrasing in the recent SEC filings indicates a possible reclassification of XRP as a commodity. Nonetheless, it is important to note that this is not an explicit declaration by the SEC.
According to FOX Business Journalist Eleanor Terrett, “They have acknowledged that issuers are applying for a product that classifies XRP as a commodity asset within a securities wrapper.”
Using the “Commodity-Based Trust Shares” rule, as noted in the filings, is a strategic choice by the Exchange and sponsors regarding how to classify and structure the product.
Regardless of these developments, the final word by the judge in the SEC vs. Ripple case, which is likely to stand unchallenged, will settle these debates once and for all.
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Anas Hasan
February 20, 2025
3 weeks ago
