XRP News Today: SEC Opens Proceedings on Franklin XRP ETF Approval

A pivotal regulatory milestone has been reached in the pursuit of a U.S. spot XRP exchange-traded fund. On June 17, 2025, the U.S. Securities and Exchange Commission (SEC) issued an official order to begin proceedings on whether to approve or disapprove the proposed rule change that would allow Cboe BZX Exchange to list and trade shares of the Franklin XRP ETF. While the commission has yet to make a final decision, this action places the fund under detailed regulatory scrutiny and also puts pressure on the SEC to decide on the ETF.

The Franklin XRP Trust aims to issue an ETF that holds physical XRP, with Coinbase Custody Trust Company serving as custodian. If approved, the ETF would track the CF Benchmark CME XRP-Dollar Index. The fund would only hold XRP, cash, and cash equivalents, and calculate net asset value daily at 4:00 p.m. ET using the benchmark index. The process began on March 13, 2025, when Cboe BZX submitted its proposal. It was published in the Federal Register on March 19. On April 29, the SEC exercised its authority to extend the review period to June 17. By June 17, the Commission had decided to formally open proceedings to determine whether the proposal was consistent with the requirements of the Exchange Act. The next major deadline is expected around September 9, which marks the 180-day review threshold.

The SEC’s proceeding focuses on whether the listing complies with Section 6(b)(5) of the Exchange Act. This provision requires that exchange rules be designed to prevent fraud and manipulation and protect investors and the public interest. The SEC will conduct additional analysis and is actively requesting written public comments. The key concern is whether the XRP market is structured in a way that supports fair pricing and can resist manipulation. Interested parties are invited to submit written comments regarding the sufficiency of the Exchange’s arguments and whether the fund should be approved. In particular, the Commission is seeking opinions on whether the proposal raises “any new or novel concerns” not addressed in past decisions. All submissions are due by the end of July.

This development marks a significant step forward in the regulatory process for the Franklin XRP ETF. The SEC's decision to open proceedings indicates a thorough evaluation of the proposal, which is crucial for ensuring investor protection and market integrity. The upcoming deadlines and the request for public comments suggest that the SEC is taking a meticulous approach to this matter, which is essential given the complexities involved in cryptocurrency markets. The outcome of this regulatory scrutiny will have implications not only for the Franklin XRP ETF but also for the broader landscape of cryptocurrency ETFs in the U.S.