Cryptocurrency journalist Eleanor Terrett just lately shared her views on the continued controversy surrounding the XRP exchange-traded fund (ETF) and its implications for the coin’s regulatory classification.
In his assertion, Terrett addressed speculations about whether or not the U.S. Securities and Change Fee (SEC) would classify XRP as a commodity when contemplating ETF purposes. He defined that the SEC is acquainted with issuers making use of for XRP-based ETF merchandise that classify the asset as a commodity inside a safety wrapper. This construction is just like how Bitcoin (BTC) and Ethereum (ETH) ETFs are handled.
“You’ve seen the SEC just lately consider a number of of those merchandise together with different underlying property that earlier SEC filings thought-about securities, similar to Solana (SOL), Dogecoin (DOGE) and Cardano (ADA),” Terrett stated.
Nonetheless, he famous that the SEC has additionally paused litigation associated to cryptocurrency classifications whereas contemplating these purposes. The SEC’s Crypto Asset and Cyber Division is at present evaluating the regulatory framework for digital property, which may clarify the delay in decisive motion.
Terrett speculated that the SEC’s broader evaluation of varied crypto ETF purposes may very well be an try and keep away from accusations of favoritism. “The SEC could also be all the things as a result of they don’t wish to be seen as choosing winners and losers,” he stated.
Regardless of this improvement, Terrett stated the regulator’s place stays unclear till it takes additional motion on these purposes. “Whereas it’s definitely notable that they didn’t reject these merchandise outright, I don’t suppose we’ll know for certain what the SEC thinks till they begin wanting extra into these purposes,” he stated.
He additionally made an announcement concerning the standing of ETF purposes, stating that Grayscale has filed an utility for a Cardano ETF, however the SEC has not but thought-about it. Nonetheless, the fee has formally thought-about purposes for XRP, Solana, Dogecoin, and Litecoin (LTC).
*This isn’t funding recommendation.
