TLDR
- The SEC has advanced the review process for WisdomTree’s proposed XRP ETF under Section 19(b)(2)(B) of the Exchange Act.
- WisdomTree filed the XRP ETF application through the Cboe BZX Exchange, initiating a formal 240-day review timeline.
- The SEC released a public notice requesting comments on the XRP ETF’s market impact, structure, and investor protections.
- Ripple’s lawsuit resolution earlier this year added regulatory clarity that supports the XRP ETF’s feasibility.
- Public input is being sought by the SEC to evaluate the proposal’s compliance with legal and market standards.
The U.S. Securities and Exchange Commission has advanced the review process for the proposed WisdomTree XRP ETF. This move marks a significant step toward potential approval under the Securities Exchange Act of 1934. The XRP ETF proposal remains under active evaluation, with the SEC now seeking public feedback on the fund’s structure and compliance.
The SEC issued Release No. 34-103124 to invite public input on the WisdomTree XRP ETF proposal. The commission is examining whether the ETF satisfies investor protection requirements and addresses market manipulation risks. This public comment period signals an advanced phase in the review timeline.
WisdomTree submitted the XRP ETF application through the Cboe BZX Exchange, initiating a 240-day regulatory review window. The SEC’s current actions fall under Section 19(b)(2)(B), which governs extended evaluation procedures. This stage indicates the SEC’s intent to conduct a deeper legal and structural analysis of the ETF.
SEC Deepens Review of XRP ETF
The SEC has now transitioned to a more detailed examination of WisdomTree‘s XRP ETF proposal. This includes a thorough assessment of the fund’s market impact, legal framework, and risk mitigation. The review follows the standard process outlined in securities regulations.
Through its formal notice, the SEC is actively requesting public comments on the XRP ETF’s potential market role and legal compliance. It will weigh these responses as part of its internal evaluation of the application. The agency aims to determine whether the product meets all applicable standards for listing on a national exchange.
The commission must complete its decision within the 240-day deadline, which began upon the proposal’s formal submission. The outcome will depend on whether the XRP ETP meets the conditions for fair and efficient market participation. The commission’s progression into this phase reflects growing regulatory attention toward digital asset-based investment vehicles.
Ripple Lawsuit Resolution Boosts ETF Viability
The conclusion of the Ripple lawsuit earlier this year provided critical regulatory clarity around XRP’s classification and usage. This has strengthened the case for asset managers like WisdomTree to propose products such as the XRP ETF. Regulatory progress has also helped institutional markets consider XRP in a new light.
Following the lawsuit’s resolution, the first XRP futures ETF launched on CME, joining BTC and ETH offerings. This development reflects the increasing formal recognition of XRP within traditional financial markets and demonstrates the expanding acceptance of regulated crypto-related investment products.
With the XRP ETF under review, the SEC will now examine its structure, risk disclosures, and operational safeguards. The agency will ensure that the fund aligns with established securities laws and provides transparent investor protections. Final approval remains pending, but this stage positions the XRP ETP closer to potential clearance.
