Cryptocurrency journalist Eleanor Terrett 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 functions. 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 much like how Bitcoin (BTC) and Ethereum (ETH) ETFs are handled.
“You’ve seen the SEC 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.
Nevertheless, he famous that the SEC has additionally paused litigation associated to cryptocurrency classifications whereas contemplating these functions. The SEC’s Crypto Asset and Cyber Division is presently evaluating the regulatory framework for digital property, which might clarify the delay in decisive motion.
Terrett speculated that the SEC’s broader evaluation of assorted crypto ETF functions may very well be an try to keep away from accusations of favoritism. “The SEC could also be taking a look at every little thing as a result of they don’t need to be seen as choosing winners and losers,” he stated.
Regardless of this growth, Terrett stated the regulator’s place stays unclear till it takes additional motion on these functions. “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 trying extra into these functions,” he stated.
He additionally made a press release relating to the standing of ETF functions, stating that Grayscale has filed an software for a Cardano ETF, however the SEC has not but thought-about it. Nevertheless, the fee has formally thought-about functions for XRP, Solana, Dogecoin, and Litecoin (LTC).
*This isn’t funding recommendation.
