MEMX Applies for XRP ETF – SEC Reviews Several Cryptocurrency Fund Applications
The U.S. Securities and Exchange Commission (SEC) is currently considering various applications for cryptocurrency funds. Among them is a proposal for an XRP ETF submitted by MEMX. Will the approval succeed?
The legal status of Ripple (XRP) is making waves worldwide. As Ripple has scored points in U.S. courts and elevated XRP to a major altcoin, the first applications for an XRP ETF are now arriving at the U.S. Securities and Exchange Commission (SEC). Observers at CoinDesk report that the application from MEMX is a specific proposal for a spot market exchange-traded fund (ETF).
The SEC is therefore faced with the question of whether to approve the MEMX proposal along with several other cryptocurrency funds. The fact that the SEC is now processing a first wave of XRP ETF applications is emblematic of the developments in the sector. If approved, the XRP ETF could have significant ramifications for other crypto projects seeking legal certainty similar to that which XRP received in the U.S. through its court success.
Under the leadership of Chairman Gary Gensler, the SEC had previously been considered a crypto skeptic by industry insiders. But the prolonged transitional phase and emerging court defeats are leading to the first shifts in attitude. The SEC is still playing for time, but enormous pressure is already building from institutions.
In recent months, several industry giants have applied for Bitcoin ETFs. Has the SEC potentially adjusted its position on the perceived risks and benefits of cryptocurrency ETFs? Analysts affirm the regulatory demands are becoming increasingly complex as the definition of each fund changes. If the SEC does want to keep objections, it will need to find more than just general arguments.
Conclusion: The decision whether to approve XRP ETF applications in the U.S. will become an important indicator for the future handling of other crypto projects. The increased acceptance of institutional investors for cryptocurrencies is another positive sign that the sector is on the way to gaining further acceptance and legal certainty.
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