XRP ETF: A Step Closer to Reality

XRP ETF Inches Closer to Reality as MEMX Seeks SEC Approval

The cryptocurrency landscape in the US is evolving rapidly, with increasing regulatory scrutiny and shifting market dynamics shaping the future of digital assets. Two key developments highlight this transformation: the recent push for an XRP exchange-traded fund (ETF) approval and strong criticism from prominent investor Jason Calacanis regarding XRP’s classification and market impact. While MEMX, a US securities exchange, has formally requested SEC approval to list an XRP ETF as a commodity-based trust, Calacanis has raised concerns about the token’s centralization and potential risks, warning that ETF approval could lead to market instability. As the debate over XRP’s status continues, the broader crypto ETF market is also expanding, with new filings for altcoins, meme coins, and index funds, reflecting growing institutional interest in the sector.

MEMX Seeks SEC Approval for XRP ETF Amidst Changing Crypto Landscape

The Members Exchange (MEMX), a US securities exchange, has officially submitted a request to the Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF) as a "Commodity-Based Trust." This filing marks a significant step forward in the ongoing effort to expand spot cryptocurrency ETFs beyond Bitcoin and Ethereum, solidifying XRP’s potential place among regulated digital asset investment products.

If approved, the XRP ETF would follow in the footsteps of spot Bitcoin and Ether ETFs, which debuted in the US last year. The application also shows the evolving regulatory landscape under President Donald Trump’s second term, which has so far been marked by a more favorable stance toward digital assets.

The SEC’s history with XRP has been contentious, dating back to December 2020 when the agency sued Ripple Labs, alleging that the company illegally sold XRP as an unregistered security. However, in August 2023, a US federal judge ruled that XRP itself is not inherently a security, though it could be classified as one depending on how it is sold. This partial legal victory for Ripple reshaped the conversation around XRP and created a clearer pathway for its potential classification as a commodity.

With MEMX’s filing, XRP could now be officially recognized in the same regulatory category as Bitcoin and Ethereum,