XRP News Today: SEC Opens Public Comment on Franklin Templeton Crypto ETFs

The US Securities and Exchange Commission (SEC) has taken a significant step towards deciding on the approval of two proposed crypto exchange-traded funds (ETFs) from asset management firm Franklin Templeton. The ETFs in question are the Franklin XRP ETF and the Franklin Solana ETF, which the firm aims to list on the Chicago Board Options Exchange’s BZX platform. This move follows a proposed rule change submitted by the Cboe BZX Exchange in March, which the SEC initially delayed in April before taking further action this week.

The institution of public comment periods is a key regulatory step, indicating that the SEC is now formally considering public input on the matter. The Commission clarified that opening the proceedings does not imply any final stance on the ETFs but seeks to encourage feedback from the public and industry stakeholders. Once the notice is published in the Federal Register, the SEC will have 35 additional days to reach a verdict, pushing the new deadline into July.

Franklin Templeton is not the only firm with ambitions in this space. Other companies, including Bitwise, ProShares, and 21Shares, have also filed to launch ETFs tied to altcoins like XRP and Solana. While the SEC has already approved spot ETFs for Bitcoin and Ethereum, it has not yet done so for other major cryptocurrencies. These filings come at a time when the SEC is reportedly adopting a more lenient stance toward digital assets under the Trump administration and its appointed chair, Paul Atkins. This includes the withdrawal of several high-profile enforcement actions against crypto companies.

Whether this relaxed regulatory climate will pave the way for ETFs tied to tokens like XRP and Solana remains uncertain. However, the interest in these products appears to be growing, particularly with political support mounting. The decision to open public proceedings is a big step toward potential approval, especially in light of the SEC’s shifting posture under the Trump administration and Chair Paul Atkins.

Meanwhile, crypto infrastructure company Fairmint is pushing for modernization in private equity markets with a detailed proposal to the SEC’s Crypto Task Force. The proposal called for blockchain-based settlement systems, investor self-custody, and the creation of a regulated DeFi sandbox. Fairmint also urged a move away from traditional wealth-based investor accreditation standards, suggesting a knowledge-based approach instead. Another key point includes the creation of a regulated decentralized finance (DeFi) sandbox to encourage more responsible innovation in US markets.

In other regulation-related news, Gemini Trust launched a scathing rebuke of the CFTC, accusing the agency of pursuing false charges based on a discredited whistleblower report. The letter shed some light on the still ongoing tension between regulatory bodies and crypto firms. Gemini Trust accused the Commodity Futures Trading Commission (CFTC) of pursuing baseless charges against the crypto exchange in 2022 to boost the careers of its litigators. In a letter that was sent to CFTC Inspector General Christopher Skinner, Gemini alleged that the CFTC’s Division of Enforcement relied on a flawed whistleblower report to bring false charges related to the company’s proposed Bitcoin futures contract.

According to Gemini, the charges were based on a submission from Benjamin Small, the firm’s former operating chief, who was dismissed in 2017 for allegedly concealing losses from a rebate fraud scheme involving several trading entities and executives. The exchange argued that Small was motivated by personal grievance after his termination, and started a malicious campaign against Gemini by submitting a whistleblower report riddled with falsehoods. Gemini claimed that Small’s accusations, including that the exchange failed to disclose the susceptibility of its futures product to market manipulation, were taken at face value by CFTC staff, prompting a multi-year investigation.

The agency eventually sued Gemini in June of 2022 for making false or misleading statements during its 2017 application process for launching the Bitcoin futures contract. Gemini settled the case with a $5 million fine in January of 2025, without admitting or denying the charges, saying at the time that it had no viable alternative. Gemini now argues that the Bitcoin futures contract in question ran smoothly for 19 months and was never linked to any manipulation, which completely undermines the CFTC’s original claims. The exchange also accused the Division of Enforcement of selectively weaponizing the Commodity Exchange Act to manufacture a high-profile enforcement action. The letter credited acting CFTC chair Caroline Pham with taking to reform the enforcement division.

Gemini concluded its letter by urging the CFTC to commit to long-term reforms to prevent future misuse of authority and pledged to support the agency’s efforts to improve its internal practices. The initiative reflects the broader frustration in the private equity space, where large companies continue to rely on spreadsheet software lacking built-in settlement mechanisms. In contrast, public companies have access to more sophisticated, regulated infrastructure. Fairmint’s CEO, Joris Delanoue, criticized the current system by pointing out that billion-dollar cap tables are still being managed in Excel, which leads to inefficiencies and compliance risks.