Durham University Research Paper Calls XRP a “Radical Form of Commodity Money”
The XRP community has renewed discussions on XRP’s status as a commodity, referencing an academic study from Durham University by Ludovico Rella, which described XRP as a 'radical form of commodity money.' The paper highlighted how XRP evolved from a trust-based credit token to a blockchain-based bridge asset for cross-border payments, demonstrating its function as a standalone digital asset independent of intermediaries. This debate aligns with a bipartisan U.S. Senate draft bill aiming to establish regulatory clarity by proposing that digital commodities like XRP fall under Commodity Futures Trading Commission (CFTC) oversight while securities remain under the SEC. The XRP community sees the bill as a significant step toward confirming XRP’s categorization as a digital commodity, further reinforced by a 2023 court ruling that found XRP is not a security.
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Introduction: Renewed Discussions on XRP's Commodity Status
Amid recent bipartisan legislation efforts toward legal clarity in the U.S., the XRP community has renewed discussions around XRP’s position as a commodity. Specifically, a self-acclaimed researcher, SMQKE, recently highlighted an academic study that analyzed XRP’s role in finance. This study described XRP as a “radical form of commodity money,” bolstering the argument within the XRP community that the token is not a security.
The Academic Study and XRP’s Two Major Roles
The study, authored by Ludovico Rella of Durham University, was published five years ago in the Journal of Cultural Economy. In this research, Rella examined money’s dual nature as a technological tool and a social system, using Ripple and XRP as primary examples.
He outlined Ripple’s transformation from its early days as a mutual credit system, reliant on trust between users, into its current blockchain-based payment solution. Today, XRP functions as a bridge asset that facilitates speed, liquidity, and efficiency for cross-border financial transactions.
XRP as a Radical Form of Commodity Money
Rella described XRP as a “radical form of commodity money” akin to digital gold, a self-contained asset that holds intrinsic value without reliance on intermediaries, company shares, or liabilities.
He introduced the concept of “digital metallism”, explaining that XRP is pre-mined, operates independently, and is transferable between any two addresses without restrictions. This unique design positions XRP as both a technological innovation and a reflection of opposing visions of money: one rooted in community and trust, the other emphasizing efficiency and liquidity.
Bipartisan Efforts for Regulatory Clarity
In light of a bipartisan draft bill introduced by the U.S. Senate Committee on Agriculture, SMQKE spotlighted the Durham University paper. This Bipartisan Market Structure Draft aims to establish a clear framework dividing oversight of digital assets between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The proposal suggests that digital commodities, such as XRP and Bitcoin, fall under the CFTC’s authority, while the SEC will oversee securities. Lawmakers believe this could resolve years of regulatory ambiguity concerning how cryptocurrencies are treated under federal law.
XRP Community Response and Implications
Within the XRP community, this proposal is seen as a significant milestone. Commentator Arthur noted that the bill could confirm XRP’s classification as a digital commodity, reinforcing the 2023 court decision declaring XRP was not a security.
Arthur emphasized that XRP functions as a utility token for payments, liquidity, and settlements, not as an investment in Ripple or any company. He added that codifying this reality into law would officially recognize XRP under the CFTC's jurisdiction, solidifying its role in modern finance.