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SEC approves XRP and Solana as digital commodities, fueling crypto ETFs and a $567M short squeeze.

Market News
04 Sep 2026
UToday
View Source
Bullish
SEC approves XRP and Solana as digital commodities, fueling crypto ETFs and a $567M short squeeze.

The SEC issued Order No. 34-106268 approving XRP and Solana as digital commodities alongside Bitcoin and Ether, allowing actively managed crypto ETFs to hold up to 15% of assets in these coins. This regulatory clarity sparked a $566.9 million short squeeze, liquidating over 105,000 traders in 24 hours and boosting the crypto market cap to $2.711 trillion. Institutional interest surged with Bitcoin and Ethereum ETFs seeing significant inflows, while privacy coin Zcash jumped 20% amid AI-related privacy concerns. The market awaits the Senate's CLARITY Act vote on Sept. 15, which could further solidify crypto regulation.

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