The U.S. Securities and Exchange Commission (SEC) has officially started reviewing the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF) designed to offer direct exposure to XRP through traditional investment channels.
This marks a historic step, as it’s the first formal SEC review of a U.S.-based spot XRP ETF. If approved, the product could pave the way for more spot crypto ETFs across other digital assets.
Cboe Files for First U.S. Spot XRP ETF
The application, submitted by the Cboe BZX Exchange, aims to list the WisdomTree XRP Trust on a national securities exchange. The ETF would track XRP’s market price using the CME CF Ripple-Dollar Reference Rate, enabling investors to gain exposure to XRP without managing private wallets or crypto custody.
This development is seen as a major milestone in integrating digital assets into the traditional financial system.
SEC Launches 240-Day Review Process
Under Release No. 34-103124, the SEC has up to 240 days to approve or reject the ETF application. During this period, the agency will conduct a thorough evaluation and invite public comments to assess whether the ETF adequately addresses risks related to market manipulation and investor protection.
This review process could shape the regulatory framework for future crypto-based investment products.
Ripple Responds to Regulatory Clarity Issues
In response to the ETF filing and broader regulatory discussions, Stuart Alderoty, Chief Legal Officer at Ripple, submitted a letter to the SEC’s crypto taskforce. He emphasized that XRP should not be classified as a security, warning against unclear regulatory language.
“Rules must be clear not just for issuers, but for all market participants,” Alderoty wrote. He criticized vague criteria like “fully functional” or “decentralized,” stating that such language only deepens confusion.
This comment underscores the ongoing debate about how digital assets should be classified and regulated in the U.S.
What’s Next for XRP and Crypto ETFs?
The SEC’s decision on the WisdomTree XRP Trust could become a benchmark for how future spot crypto ETFs are evaluated. While the review is still in its early stages, the outcome may significantly influence institutional interest and broader mainstream adoption of cryptocurrencies.
Until then, stakeholders will closely watch for public comment responses and further statements from the SEC and Ripple.
