SEC begins review of first spot XRP ETF application in US

The US Securities and Exchange Commission (SEC) has started an official review of WisdomTree's proposal to create a spot ETF on XRP. If approved, the fund will be the first legal way for US investors to access XRP through traditional brokerage accounts.

The SEC is expected to make a decision within 240 days. The regulator is seeking public comments on the potential risks of market manipulation. Public discussion accompanied by market analysis will help identify the potential risks of this new financial instrument. By providing the necessary documents, WisdomTree representatives have emphasized their willingness to cooperate with the SEC.

The decision on the application could be an important step in the regulation of digital assets. Stuart Alderoty of Ripple noted the progress in the legal regulation of XRP and expressed hope for an objective review of the application. The conclusion of the previous lengthy litigation with the SEC has created a clearer legal basis for working with XRP, significantly increasing the chances of a positive decision in the current case.

WisdomTree’s success could pave the way for similar products for other cryptocurrencies.