Bitcoin and XRP Classified as Commodities by SEC and CFTC, Spot Market Regulation Remains Unclear

U.S. regulators, the SEC and CFTC, have clarified that Bitcoin and XRP are considered digital commodities, not securities. While derivatives of these cryptocurrencies fall under CFTC jurisdiction, comprehensive regulatory oversight for their spot trading remains unclear, creating a gap in current law. The SEC-CFTC joint interpretation in 2026 aimed to provide clarity but did not grant the CFTC full authority over spot crypto exchanges. The pending CLARITY Act seeks to establish clearer rules for crypto trading venues.