SEC opens public comment on WisdomTree's XRP Spot ETF under Section 19(b)(2)(B).
Ripple lawsuit resolution boosts regulatory clarity for XRP.
SEC decision expected within 240 days; approval odds reportedly rising.
The United States Securities and Exchange Commission moves forward with its assessment of WisdomTree's proposal for an XRP Spot ETF. The agency initiated a public comment period during its regulatory process. After submission to the Cboe BZX Exchange the ETF now proceeds to a crucial stage according to Section 19(b)(2)(B) of the Securities Exchange Act of 1934.
The move represents a significant step toward establishing clearer regulatory guidelines for XRP investment products.
SEC Begins Review of XRP ETF Proposal Structure
The SEC’s current review involves a detailed examination of the structure and scope of the proposed investment fund. The regulator will assess the ETF’s compliance with legal requirements governing securities offerings. This includes evaluation of market impact, trading integrity, and investor safeguards. The regulatory body aims to determine if WisdomTree’s proposed fund can meet the strict standards required for spot cryptocurrency ETFs.
A formal notice was issued under Release No. 34-103124, inviting the public to share opinions on the ETF’s potential benefits and risks. The Commission intends to assess whether the fund protects investor interests while preventing market manipulation. The proposal’s entrance into the public comment stage marks a significant procedural step in the overall approval process.
Legal Clarity Following Ripple Lawsuit Aids Progress
The progress of WisdomTree’s application comes amid improved regulatory clarity for XRP. The conclusion of the Ripple Labs lawsuit earlier this year provided a clearer framework for XRP classification. The legal outcome helped ease institutional concerns, resulting in new financial products tied to XRP. The launch of an XRP futures ETF on CME followed shortly after, joining similar offerings for Bitcoin and Ethereum.
Ripple’s Chief Legal Officer Stuart Alderoty also addressed regulatory issues in a recent letter to the SEC. He highlighted the need for updated guidelines consistent with existing law. This push for transparent and lawful guidance aligns with the agency’s ongoing examination of cryptocurrency-based investment vehicles. The review of WisdomTree’s application reflects the Commission’s effort to bring structured oversight to digital assets.
Market Outlook and Public Participation
The SEC has a 240-day window to approve or reject the application following the comment period. Industry analysts note that the review's progression suggests a more favorable environment for cryptocurrency ETFs. Public comments will help shape the final evaluation, allowing stakeholders to address key aspects of market reliability and investor protection.
Additionally, the announcement follows recent activity surrounding multiple XRP-related developments. These include institutional involvement and broader integration of XRP in regulated financial platforms. Notably, recent reports indicate that the odds of ETF approval have increased as regulatory milestones are met.
The agency’s current focus remains on analyzing the fund’s design and how it aligns with market stability and investor interest.
