Amid recent bipartisan legislative efforts toward legal clarity in the U.S., the XRP community has renewed discussions regarding XRP’s status as a commodity. Specifically, SMQKE, a self-proclaimed researcher, recently highlighted an academic study that explored XRP’s role in finance. The paper described XRP as a “radical form of commodity money,” adding to what the XRP community views as evidence that the token is not a security.
## XRP Has Two Major Roles in Finance
For context, the study was authored by Ludovico Rella of Durham University and published five years ago in the *Journal of Cultural Economy*. In his research, Rella examined how money functions both as a technological tool and a social system, using Ripple and XRP as primary examples.
He traced Ripple’s evolution from its early days as a mutual credit system—relying heavily on trust between users—to its current incarnation as a blockchain-based payment solution focused on speed, liquidity, and efficiency. Throughout this transformation, XRP shifted from being a community-based credit token to serving as a bridge asset for transferring money across borders.
## A Radical Form of Commodity Money
According to Rella, XRP represents “a radical form of commodity money” designed to behave like digital gold. It is a self-contained asset that holds intrinsic value independently. Crucially, XRP does not depend on intermediaries, company shares, or liabilities.
Additionally, XRP exists independently as a pre-mined asset and can be transferred freely between any two addresses without restrictions. Rella referred to this concept as “digital metallism.”
He argued that XRP is more than just a financial instrument — it embodies two contrasting visions of money: one that emphasizes community and trust, and another that prioritizes efficiency and liquidity. By bridging these ideas, XRP stands as both a technological innovation and a symbol of money’s ongoing evolution in modern finance.
## Renewed Interest Amid Bipartisan Regulatory Discussions
SMQKE brought renewed attention to Rella’s Durham University paper following the release of a bipartisan draft bill from the U.S. Senate Committee on Agriculture. The bill aims to clarify how digital assets fit within existing regulatory frameworks.
Known as the Bipartisan Market Structure Draft, the proposal seeks to establish a clear division of oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under this framework, digital commodities like XRP and Bitcoin would fall under CFTC authority, while the SEC would retain jurisdiction over securities.
Lawmakers hope this bill will resolve years of uncertainty surrounding the federal government’s approach to cryptocurrencies.
## Community Response and Implications
Within the XRP community, many view this development as a significant milestone. Commentator Arthur expressed optimism, saying the bill could confirm XRP’s status as a digital commodity, building on a 2023 court ruling that determined XRP is not a security.
He emphasized that XRP functions primarily as a utility token, employed for payments, liquidity provision, and settlements—not as an investment tied to Ripple or any corporate entity. According to Arthur, the draft legislation effectively codifies this reality into law by recognizing XRP under the CFTC’s oversight instead of the SEC’s.
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This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect those of *The Crypto Basic*. Readers are encouraged to conduct thorough research before making any investment decisions. *The Crypto Basic* is not responsible for any financial losses.
https://thecryptobasic.com/2025/11/12/durham-university-research-paper-calls-xrp-a-radical-form-of-commodity-money/
