KEY POINTS
- An acknowledgement doesn't mean the proposed ETF will be approved but it is a major step forward
- If the SEC approves the proposed ETF, it may lead to more clarity about $XRP's legal status
- Ripple's CEO met with top lawmakers ahead of the development at the SEC
XRP pumped Thursday night after the U.S. Securities and Exchange Commission (SEC) acknowledged NYSE Arca's 19b-4 filing for Grayscale's proposed XRP exchange-traded fund (ETF).
The world's third-largest cryptocurrency by market cap was up 4.4% in the day and based on its chart, the XRP Ledger's native crypto token was reacting positively to the news.
SEC Acknowledges Grayscale's $XRP ETF
In a filing Thursday night, the Wall Street regulator acknowledged Grayscale's proposal to convert its existing Grayscale XRP Trust into an XRP ETF. The filing also published details of the NYSE Arca's 19b-4 form, a document submitted by exchanges seeking to list and trade a specific ETF.
It is worth noting that an acknowledgement doesn't necessarily mean the ETF will be approved. It is just one of several steps in the SEC's long review for a new ETF.
Why It Matters
The SEC's acknowledgment of the filing is a crucial development for the XRP community, especially considering the XRP token's unique case.
Unlike ETF filings around some crypto assets, filings on XRP are particularly interesting for crypto users due to the token's legal status.
In 2023, a federal judge ruled that XRP is not a security if it is sold on exchanges – the ruling was a result of the SEC's years-long lawsuit against Ripple. However, the ruling was vague regarding the asset's legal status when offered through institutions.
If the SEC officially approves XRP ETFs for trading, it could pave the way for further clarity around XRP and may also have a positive impact on the lawsuit against Ripple, the largest known holder of XRP.
Ripple CEO Meets Lawmakers
Quite interestingly, a few hours before news of the development emerged, Ripple CEO Brad Garlinghouse shared snaps from his meetings Thursday with some lawmakers, including Sen. Tim Scott, R-S.C., the new Chairman of the Senate Committee on Banking, Housing, and Urban Affairs.
Walked away from an action-packed day in DC yesterday with the feeling that there is (finally) an incredible opportunity to advance meaningful bipartisan legislation that establishes clear, constructive and pro-innovation regulatory frameworks for crypto.
— Brad Garlinghouse (@bgarlinghouse) February 13, 2025
Thank you to these… pic.twitter.com/LF6V536udg
He also said he spoke with Bo Hines, the head of U.S. President Donald Trump's presidential crypto council.
Earlier this month, there were reports suggesting that Garlinghouse is one of the people on a "shortlist" of crypto industry experts that the Trump team was considering for advisory roles in the council.
The Trump White House' crypto council has only allocated 24 seats for advisors. It remains to be seen whether Garlinghouse will indeed be part of the advisory board.
Meanwhile, many crypto users are expecting XRP to continue climbing as the XRP Army waits for news on XRP ETFs and whether the SEC will clear the way for a new crypto ETF.
