"SEC Acknowledges XRP ETF Request, Ripple CTO Clarifies XRP Supply"

The cryptocurrency market is witnessing significant developments as regulatory shifts and expert insights shape industry discussions. The US Securities and Exchange Commission (SEC) has acknowledged a request to list 21Shares’ XRP exchange-traded fund (ETF), marking a potential step toward broader acceptance of XRP-based investment products. Meanwhile, Ripple CTO David Schwartz has weighed in on a longstanding debate, clarifying key differences between XRP and Bitcoin’s supply dynamics.

The SEC’s acknowledgment of Cboe BZX’s request to list 21Shares’ XRP ETF is a notable milestone in the regulatory process for US exchanges attempting to list ETFs containing spot XRP. This development comes amidst a changing regulatory climate and follows a recent shift in the SEC’s stance toward digital assets. The acknowledgment does not signify approval but serves as an early-stage milestone in the regulatory process.

The SEC’s response is particularly notable given its historical legal battle with Ripple, the blockchain company associated with XRP. In 2020, the SEC filed a lawsuit against Ripple, alleging that the firm sold XRP as an unregistered security. The case, which has had longstanding implications for crypto regulation, saw partial resolution in August 2023 when a US judge ruled that XRP itself is not inherently a security, though some institutional sales could fall under that classification.

If approved, the 21Shares Core XRP Trust ETF would be classified as a commodity trust, putting XRP in the same category as spot Bitcoin (BTC) and Ethereum (ETH) ETFs, which received their green light from US regulators last year. The timing of the latest XRP ETF filings coincides with a notable shift in the US political landscape, with Donald Trump winning re-election on Nov. 5, 2024, and pledging to make the US “the world’s crypto capital.”

This political shift has already spurred a wave of ETF filings, reflecting industry optimism that the Trump administration will ease regulatory barriers for cryptocurrency products. On Feb. 6, Cboe BZX requested permission to list four spot XRP ETFs, including 21Shares’ application. The XRP ETF is not the only fund seeking regulatory approval, as asset managers have proposed ETFs for meme coins, altcoins,