Acting SEC Chair Affirms Bitcoin and Ethereum Are Not Securities, Avoids XRP Clarification

Acting SEC Chairman Mark Uyeda confirmed during a recent CNBC interview that Bitcoin and Ethereum are not considered securities, referencing past statements from former SEC Chair Gary Gensler. “My predecessor, Chairman Gensler, has made it pretty clear that Ethereum and Bitcoin are not securities,” Uyeda said. “If involved either of those two, it would not be insider trading because it does not involve the purchase of securities.”

Despite this clarification, Uyeda declined to confirm the legal status of XRP when questioned by CNBC host Andrew Ross Sorkin. This comes as XRP experienced an 8% price drop following uncertainty sparked by Uyeda’s response.

While a federal judge previously ruled that XRP itself is not a security—marking a significant legal win for Ripple—the SEC has not officially confirmed its stance. Ripple also recently dismissed its cross-appeal against the SEC, signaling an end to the lengthy legal battle. This move follows the SEC's broader retreat from several high-profile crypto enforcement actions.

Historically, former SEC Director William Hinman categorized Ethereum as a commodity in a 2018 speech—an assertion that remains controversial. Gensler, during his tenure, repeatedly dodged questions regarding Ethereum's legal classification, causing further confusion in the crypto community.

Meanwhile, Ripple’s RLUSD stablecoin has seen growing adoption, reaching $293 million in circulation. Speculation remains that the SEC may apply a similar framework used for Ethereum when addressing XRP’s regulatory status.

Adding to the shifting landscape, pro-crypto SEC Chair nominee Paul Atkins recently passed a key Senate confirmation vote, potentially signaling a more favorable regulatory climate for the crypto industry.

With Bitcoin, Ethereum, and possibly XRP gaining regulatory clarity, the U.S. crypto market may be entering a pivotal era of legal certainty and investor confidence.