Regulatory scrutiny intensifies surrounding bother ETF proposals amid ongoing correct battles and market manipulation issues.
Key Takeaways
- The SEC will mediate on the Grayscale XRP ETF by October 18, 2025, after a 240-day evaluation project.
- The ETF conversion faces hurdles attributable to XRP’s correct situation and the SEC’s cautious capacity to altcoin ETFs.
The Securities and Alternate Rate will mediate on Grayscale’s proposed XRP ETF by October 18, 2025, following the submitting’s official posting to the Federal Register this present day.
🚨NEW: @Grayscale’s $XRP ETF (19b-4 submitting) has formally been posted to the Federal Register.
All this diagram is that the clock begins now for the @SECGov to maintain interplay and both approve or insist on or sooner than October 18. pic.twitter.com/dhMSvOcSXF
— Eleanor Terrett (@EleanorTerrett) February 20, 2025
The posting initiates a 240-day evaluation timeline, all in which the SEC should approve, insist, or prolong its evaluate of the appliance.
The project started with the SEC’s February 14 acknowledgment of the submitting.
The regulatory evaluation entails a 21-day public comment duration for stakeholders to put up concepts on the proposal. Following this, the SEC will assess the feedback and habits its analysis at some level of the mandatory timeframe.
As allotment of the evaluation, the SEC will grasp into yarn compliance with securities guidelines, assess market integrity, name possible manipulation dangers, and gaze custody preparations and investor protections.
The applying faces several regulatory hurdles.
XRP’s correct situation remains under scrutiny attributable to ongoing litigation between Ripple Labs and the SEC relating to whether XRP constitutes a security.
Additionally, the SEC has demonstrated greater caution toward altcoin ETFs when in comparison with Bitcoin ETFs, citing elevated market manipulation dangers.
