XRP Acknowledgement As Commodity By CFTC Faces Criticism

A regulatory update that places XRP within a commodity framework has prompted sharp disagreement from certain corners of the cryptocurrency community, notably among some Chainlink supporters.

The dispute focuses on how tokens should be categorized and the practical consequences of classification decisions.

Vet (@Vet_X0), a validator on the XRP Ledger, summarized the reaction by stating that many participants “see no difference between issued and native assets”, a phrase that reflects a broader skepticism about differentiated treatment.

LINK marines were offended that XRP is not a security.

They see it as a negative. they see no difference between issued and native assets.

Memes/BTC/XRP are the same for them. digest this for a sec. — Vet (@Vet_X0) August 9, 2025 CFTC Listing And Contract Mechanics Official filings indicate that the Commodity Futures Trading Commission has recognized XRP as a commodity for regulated Event Contracts.

These contracts permit short-interval speculative positions that settle against a spot reference price provided by an external data provider.

The designation places XRP within a derivatives framework rather than under securities rules.

The Event Contracts allow traders to take positions on XRP’s price over short periods.

The final payout is calculated using the average price from a trusted data provider, Lukka Inc., listed in the filings as “U-XRP.” Each contract has a maximum payout, meaning potential gains or losses are limited.

These features are intended for quick, regulated trades rather than long-term investing.

We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Community Perspective And Objections Critics aligned with the LINK Marines raised two principal objections.

First, they argued that a non-security classification for XRP reduces the scope of legal safeguards associated with securities regulation.

Second, they rejected the division between issued tokens and native network tokens, asserting that issuance mechanisms and governance structures merit similar regulatory consideration across token types.

Vet’s remarks exemplify these points and signal persistent community doubts about the benefits of the new classification.

What Does This Mean For Market Participants? Designating XRP as a commodity for Event Contracts may facilitate wider institutional participation by offering recognized pathways for derivatives trading.

This recognition could open avenues for futures and options under CFTC oversight , potentially increasing liquidity and formal infrastructure for XRP.

For XRP supporters like Vet, the classification affirms the asset’s legitimacy in regulated markets and highlights meaningful differences between asset types.

While some communities remain unconvinced, the legal battle between Ripple and the SEC is now over , and XRP’s status as a non-security is set in stone.

Proponents view the CFTC’s move as a step toward broader acceptance and sustained market growth.

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