Insightful Analysis on XRP ETF Delays and Regulatory Developments
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Prospects of XRP ETFs in the U.S.: An Optimistic Outlook
The journey towards the approval of an XRP exchange-traded fund (ETF) in the United States has hit another pause, yet optimism remains undeterred among market professionals. The U.S. Securities and Exchange Commission (SEC) has recently deferred its decision on various spot XRP ETF applications, pushing the deadlines to October. Despite this, Nate Geraci, President of The ETF Store, remains positive about the potential approval, interpreting the delay as a positive sign of regulatory progress nearing completion.
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XRP ETFs Likely to Launch Within 60 Days Despite SEC Postponements
Geraci expressed his positive outlook following the SEC’s decision to delay its ruling on the 21Shares Core XRP Trust. Originally set to decide by August 20, the SEC extended the deadline to October 19, allowing more time for public comment review and addressing regulatory issues under the Securities Exchange Act of 1934.
This extension impacts not only 21Shares but also other significant firms with XRP ETF applications pending. Companies like Grayscale, Bitwise, WisdomTree, Canary Capital, CoinShares, and Franklin Templeton are also in the queue. If the current timeline holds, the SEC will deliver its decisions in a compressed timeframe. Grayscale may receive a ruling by October 18, followed by 21Shares on October 19, Bitwise on October 20, and both Canary Capital and WisdomTree between October 24 and 25.
Market analysts anticipate that the SEC will treat these applications with a consistent approach, similar to prior ETF approvals. Despite the delay, Geraci maintains his confidence. In a recent post, he expressed that the “spot crypto ETF floodgates appear set to open in the next two months,” indicating that the framework for these funds is nearly ready, suggesting that the delay is more procedural than problematic.
Regulatory Changes Indicate Accelerated Crypto Adoption
Geraci’s optimism regarding the approval of XRP ETFs is linked to broader shifts in U.S. financial regulations. He noted that the U.S. is on the brink of approving more spot crypto ETFs, with Ethereum staking approval anticipated soon and the Clarity Act under review in the Senate. He predicted that the remainder of the year would be dynamic as new digital asset regulations start to unfold.
His perspective aligns with that of Fed Governor Michelle Bowman, who recently spoke at the Wyoming Blockchain Symposium. Bowman noted that change is imminent and called on banks and regulators to embrace new technologies. She argued that an overly cautious stance from banks could cause the U.S. to lag in the global race for financial innovation.
Bowman also emphasized that regulation and innovation need not be at odds. According to her, the U.S. must choose to lead the future of finance or risk falling behind. Congress has already enacted the GENIUS Act, which sets the framework for stablecoins. Industry stakeholders are closely monitoring the Senate’s discussions on the Digital Asset Market Clarity Act, which may divide oversight responsibilities between the SEC and the CFTC.
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