According to reports, a bipartisan draft bill in the US Senate has reignited arguments about whether XRP is a commodity or a security.
The Bipartisan Market Structure Draft would divide oversight: the Commodity Futures Trading Commission would police digital commodities like XRP and Bitcoin, while the Securities and Exchange Commission would keep authority over traditional securities. Proponents say the move could remove years of legal uncertainty for many tokens.
Durham Study Frames XRP As Commodity
Based on reports, academic work from Durham University has entered the debate. Ludovico Rella published a paper in the Journal Of Cultural Economy five years ago that examined how money works as both a tool and a social system.
Rella used Ripple and XRP as main examples and described XRP as a “radical form of commodity money.” He also used the term “digital metallism” to show how XRP can be seen as a self-standing asset that holds value without relying on company liabilities or shares.
What stands out most is his vivid description of XRP as “like gold in your hands” — a digital asset designed to be “the most liquid of assets on the XRP Ledger.”
XRP’s Dual Role In Payments
Rella argued that XRP plays two clear roles. It behaves like a digital asset with commodity-like traits and it also serves as part of Ripple’s payment network, acting as a bridge asset for moving money across borders.
The study traces Ripple’s path from a trust-based mutual credit system to a blockchain-powered payments network focused on speed and liquidity. That historical arc helps explain why some users treat XRP as an independent store of value while others use it as a tool for cross-border transfers.
Reports have disclosed that senators behind the draft want to make legal lines cleaner so firms and markets know which rules apply. Many in the XRP community reacted quickly, pointing to the 2023 court ruling that found XRP was not a security as evidence that the token belongs under CFTC oversight.
Commentators in the space argue the combination of that court decision and new legislation could finally put the question to rest.
Market Moves Add Weight To The Debate
Data cited by community members has been used to underline the argument. According to reports, XRP now processes over $5 trillion a year, and Ripple executives have spoken about CBDC pilots and network growth that could place XRP at the center of large payment flows.
Ripple CEO Brad Garlinghouse has set a target of capturing 14% of SWIFT’s $150 trillion volume, a share that would represent about $40 trillion by 2030 if reached.
Price action has followed the chatter: XRP traded at $2.50, up from $2.40 and showing a 4% gain at the time of the latest report. Daily trade volume rose by 52%, with nearly $5.8 billion in XRP changing hands.
Featured image from Gemini, chart from TradingView
