XRP Earns Academic Praise: University Study Calls It ‘Gold In Your Hands’

Overview

Recent developments in the U.S. Senate regarding cryptocurrency regulation have reignited discussions about the classification of XRP, a digital asset associated with Ripple. A study from Durham University has contributed to this debate by framing XRP as a commodity, which could influence its regulatory future and market perception.

Bipartisan Draft Bill and Regulatory Oversight

A bipartisan draft bill introduced in the U.S. Senate aims to clarify the regulatory landscape for cryptocurrencies. The proposed legislation would assign oversight of digital commodities, including XRP, to the Commodity Futures Trading Commission (CFTC), while traditional securities would remain under the purview of the Securities and Exchange Commission (SEC). Advocates of the bill argue that it could eliminate years of legal ambiguity surrounding various tokens.

Academic Insights from Durham University

Ludovico Rella’s academic work, published in the Journal of Cultural Economy, has entered the conversation regarding XRP’s classification. Rella’s study describes XRP as a “radical form of commodity money,” suggesting that it functions as a self-standing asset that maintains value independently of company liabilities or shares. He has characterized XRP as “like gold in your hands,” emphasizing its design as a highly liquid asset within the XRP Ledger.

XRP’s Dual Functionality

Rella’s study highlights two primary functions of XRP:

1. Digital Asset with Commodity Traits: XRP exhibits characteristics typical of commodities.
2. Bridge Asset for Payments: XRP facilitates cross-border transactions as part of Ripple’s payment network.

The historical evolution of Ripple from a trust-based mutual credit system to a blockchain-driven payment platform underscores why some users view XRP as a store of value while others utilize it for transferring funds internationally.

Legislative Push for Clarity

Reports indicate that senators backing the draft bill seek to provide clearer legal definitions for firms and markets, thus enhancing regulatory certainty. The XRP community has responded positively, referencing a 2023 court ruling that determined XRP is not a security, which supports the argument for CFTC jurisdiction over the token. Observers believe that the combination of this court decision and the new legislative efforts could resolve the ongoing debate about XRP’s classification.

Market Dynamics

Community members have pointed to significant data supporting the argument for XRP’s commodity status. Reports indicate that XRP processes over $5 trillion annually, and Ripple executives have discussed pilot projects for Central Bank Digital Currencies (CBDCs) that could position XRP as a key player in global payment systems.

Impact on the crypto market

• The bipartisan draft bill may provide clarity on the regulatory status of cryptocurrencies, potentially benefiting XRP.
• Academic support framing XRP as a commodity could influence investor sentiment and regulatory decisions.
• The clarity in regulation might attract institutional investment in XRP and other digital assets.
• Increased processing volume and discussions about CBDCs could enhance XRP’s utility and market presence.
• The combination of favorable legal rulings and new legislation may stabilize XRP’s market position, fostering a more predictable trading environment.

Updated: 11/13/2025, 10:24:26 PM