SEC Postpones Decision on XRP-ETF
The US Securities and Exchange Commission (SEC) had announced a reorientation of its policies regarding cryptocurrencies with a recent series of legal settlements. XRP was considered a beacon of hope for regulatory clarity. However, the application for a crypto exchange-traded fund (ETF) focused on XRP remains pending for the time being. As was revealed this week, the SEC again postponed the decision deadline regarding an XRP ETF planned by the asset management company Phoenix.
The SEC informed Phoenix of this development in a letter dated October 6, stating that it needs more time to review the documents and therefore the decision will not be made until further notice. Originally, the SEC wanted to make a decision on the XRP ETF by October 9, but now the authority has until at least December 7 to do so. Observers expect that many U.S. companies will submit applications for XRP-based products during this period, as the token currently enjoys great popularity.
The hope for approval of an XRP ETF this year has now been dampened, especially since the SEC twice rejected proposals for an XRP-based fund by other parties in 2021. According to the filing, Phoenix intends to invest at least 80 percent in XRP through the ETF. The company, based in Denver, says it aims for this product to be the first XRP ETF worldwide approved for retail investors in the United States.
Leave a Reply