21Shares XRP ETF Application Signals Shift in SEC’s Stance on Cryptocurrency

On February 18, COINOTAG News reported that the U.S. securities trading platform MEMX has submitted an application to the U.S. Securities and Exchange Commission (SEC) for the listing of the 21Shares XRP ETF as a “commodity-based trust.” This move represents a significant step towards integrating cryptocurrency into traditional financial markets, specifically targeting the trading of spot XRP. Notably, this application reflects an evolving perspective from the SEC regarding cryptocurrency regulation, particularly during the second term of President Donald Trump. The context of this request is rooted in the ongoing legal battles faced by Ripple Labs, previously entangled in a lawsuit initiated by the SEC in 2020, where the agency asserted that XRP was an unregistered security. While a partial resolution has emerged affirming that the XRP token is not classified as a security in a general sense, it remains to be evaluated under specific conditions, indicating the regulatory complexities surrounding digital assets.