Regulatory scrutiny intensifies surrounding spot ETF proposals amid ongoing authorized battles and market manipulation issues.
Key Takeaways
- The SEC will determine on the Grayscale XRP ETF by October 18, 2025, after a 240-day evaluation course of.
- The ETF conversion faces hurdles as a consequence of XRP’s authorized standing and the SEC’s cautious strategy to altcoin ETFs.
The Securities and Alternate Fee will determine on Grayscale’s proposed XRP ETF by October 18, 2025, following the submitting’s official posting to the Federal Register right this moment.
🚨NEW: @Grayscale’s $XRP ETF (19b-4 submitting) has formally been posted to the Federal Register.
All this implies is that the clock begins now for the @SECGov to interact and both approve or deny on or earlier than October 18. pic.twitter.com/dhMSvOcSXF
— Eleanor Terrett (@EleanorTerrett) February 20, 2025
The posting initiates a 240-day evaluation timeline, throughout which the SEC should approve, deny, or prolong its analysis of the appliance.
The method started with the SEC’s February 14 acknowledgment of the submitting.
The regulatory evaluation includes a 21-day public remark interval for stakeholders to submit suggestions on the proposal. Following this, the SEC will assess the feedback and conduct its evaluation throughout the required timeframe.
As a part of the evaluation, the SEC will consider compliance with securities legal guidelines, assess market integrity, establish potential manipulation dangers, and study custody preparations and investor protections.
The appliance faces a number of regulatory hurdles.
XRP’s authorized standing stays underneath scrutiny as a consequence of ongoing litigation between Ripple Labs and the SEC relating to whether or not XRP constitutes a safety.
Moreover, the SEC has demonstrated larger warning towards altcoin ETFs in comparison with Bitcoin ETFs, citing elevated market manipulation dangers.
