SEC Finally Moves: Spot XRP ETF Under Formal Review—Is Crypto Legitimacy on the Horizon?

The US Securities and Exchange Commission—yes, the same folks who dragged their feet on Bitcoin ETFs for a decade—has kicked off its first formal review of a spot XRP exchange-traded fund. Cue the irony.

Why This Matters

After years of legal wrangling and regulatory whiplash, XRP might finally get its mainstream moment. A green light could flood institutional cash into Ripple’s embattled token—assuming Wall Street can stomach crypto’s volatility between martini lunches.

The Bigger Picture

This isn’t just about XRP. Approval would signal the SEC’s reluctant acceptance that crypto isn’t going anywhere—no matter how many lawsuits they file. But don’t hold your breath; these are the same bureaucrats who still think ‘meme stock’ is a technical term.

Bottom Line

Whether this ETF sails through or gets buried in paperwork, one thing’s clear: the SEC’s playbook of ‘delay, deny, and despair’ is looking shakier by the day. Crypto’s knocking—and even regulators can’t pretend not to hear forever.

SEC to Review WisdomTree Spot XRP ETF

The SEC is evaluating whether the proposed rule change to list WisdomTree’s XRP ETF on Cboe BZX is designed to prevent fraudulent and manipulative practices. The proposal must implement measures that protect investors and serve the public interest before it can be considered for approval.

Additionally, the SEC noted that the proposal may raise new concerns not previously considered by the agency, and these issues need to be addressed. While the proceedings continue, the Commission has asked interested persons to submit their views regarding the approval or disapproval of the application.

“The Commission asks that commenters address the sufficiency of the Exchange’s statements in support of the proposal, which are set forth in the Notice, in addition to any other comments they may wish to submit about the proposed rule change,” the SEC stated.

Notably, the initiation of proceedings for the proposal does not guarantee that the SEC will approve the product. The agency has roughly 240 days to decide whether the proposal is worth approving or not.

Not the First

It is also worth mentioning that the WisdomTree ETF, if approved, will not be the first XRP fund to be listed in the U.S. Early last month, the Vermont-based asset manager Teucrium launched the first Leveraged XRP ETF in the U.S. on NYSE Arca. Towards the end of the month, the fund management company ProShares listed three futures ETFs. The funds provide investors with leveraged and inverse exposure to XRP through derivatives.

The SEC approval of a spot XRP ETF WOULD pave the way for the launch of similar products. This would be a huge win for the XRP community, considering that the token’s issuing company, Ripple, was involved in a tedious legal battle with the SEC for years.