- MEMX files with SEC for an XRP ETF as a “Commodity-Based Trust.”
- This filing follows a landmark ruling clarifying XRP’s regulatory status.
- The administration’s pro-crypto stance encourages exchanges to explore new ETF options.
MEMX, a U.S. securities exchange, has filed with the SEC to list an XRP exchange-traded fund (ETF) as a “Commodity-Based Trust.” This is a significant boost to the token’s mainstream financial acceptance.
The decision by MEMX highlights the evolving perception of Ripple’s native digital asset, within the established financial framework. Beyond MEMX, Bank of America is among the financial institutions that hold patents related to XRP. This adds a layer of intrigue and potential strategic alignment between MEMX’s latest filing.
MEMX also competes with established exchanges like the NYSE and NASDAQ by offering modern infrastructure, transparency, and low fees is crucial. This competitive drive likely played a role in their decision to file for an XRP ETF. They are looking to differentiate themselves and attract investors.
In the past, critics cast doubt on an XRP ETF due to its regulatory scrutiny, notably from the SEC’s 2020 lawsuit alleging unregistered securities issuance. A subsequent landmark court ruling in August stating XRP is not inherently a security but could be under specific circumstances opened the door for its consideration alongside commodities like Bitcoin and Ethereum.
Adding to the current wave of optimism is the current administration’s pro-crypto stance. This approach has encouraged exchanges like MEMX to expand cryptocurrency investment vehicles, contributing to a broader trend of issuers seeking to launch various cryptocurrency ETFs. MEMX’s filing joins prior efforts, including Canary Capital’s 2024 filing and the SEC’s acknowledgment of Grayscale’s spot XRP ETF application.
This filing coincides with a shift towards a more accommodating regulatory climate for cryptocurrencies, particularly following recent political changes.
SEC to Hold Closed Meeting Amidst XRP Litigation Speculation
Amidst this ETF filing, the U.S. Securities and Exchange Commission (SEC) is scheduled to convene a closed meeting on February 20, 2025, addressing “Resolution of litigation claims.”
This agenda item suggests potential judgments or settlements in ongoing legal disputes. The meeting, closed to the public, will involve Commissioners and staff.
Speculation arises as “Resolution of litigation claims” often signifies final outcomes in court cases. The SEC’s focus on this topic hints at possible resolutions in key legal battles. Investors and market watchers will closely monitor subsequent announcements for any developments stemming from this closed-door session.