Charles Hoskinson Says ADA and XRP Should Be Classified as Digital Commodities

Cardano founder Charles Hoskinson has argued that ADA and XRP should be classified as commodities rather than securities. Speaking to blockchain media The Crypto Basic on September 17 (local time), he identified issues with the current classification of digital assets as a key reason why the Clarity Act has stalled in the US Senate.

Hoskinson criticized the approach of broadly grouping various digital assets under commodities and positioning the Commodity Futures Trading Commission (CFTC) as the central regulator. He stressed that securities and commodities have fundamentally different characteristics, making it inappropriate to apply a single regulatory framework. While emphasizing that he does not oppose commodity regulation for cryptocurrencies, he argued that the legislative process should first clarify which digital assets qualify as actual commodities versus those requiring separate classification as digital securities.

He specifically cited Bitcoin, Cardano (ADA), and XRP as assets falling under 'true commodities.' This aligns with a recent joint interpretation by the SEC and CFTC earlier this year that categorized cryptocurrencies into digital commodities, digital securities, and stablecoins. Under this framework, ADA and XRP were included in the digital commodities category.

Notably, a New York Southern District Court ruled in July 2023 that XRP itself should be distinguished from Ripple's sales practices, determining that XRP is not inherently a security but certain institutional sales may constitute securities transactions. The court also clarified that secondary market trading of XRP did not qualify as unregistered securities sales under the circumstances.

Cardano had previously been listed among assets targeted by SEC enforcement actions against major cryptocurrency exchanges. However, regulatory dynamics have shifted: the SEC dropped its civil lawsuit against Coinbase in February 2025 and later proposed a broader framework in March 2026 to distinguish between digital commodities and other categories of crypto.

Hoskinson also highlighted that US-centric regulation has limitations given that digital assets operate across borders. He argued that regulatory decisions by one country affect participants and businesses globally, advocating for mutual recognition systems among jurisdictions to align different regulatory frameworks.