Cryptocurrency journalist Eleanor Terrett recently shared her views on the ongoing controversy surrounding the XRP exchange-traded fund (ETF) and its implications for the coin’s regulatory classification.
In his statement, Terrett addressed speculations about whether the U.S. Securities and Exchange Commission (SEC) would classify XRP as a commodity when considering ETF applications. He explained that the SEC is familiar with issuers applying for XRP-based ETF products that classify the asset as a commodity within a security wrapper. This structure is similar to how Bitcoin (BTC) and Ethereum (ETH) ETFs are treated.
“You’ve seen the SEC recently evaluate several of these products along with other underlying assets that previous SEC filings considered securities, such as Solana (SOL), Dogecoin (DOGE) and Cardano (ADA),” Terrett said.
However, he noted that the SEC has also paused litigation related to cryptocurrency classifications while considering these applications. The SEC’s Crypto Asset and Cyber Division is currently evaluating the regulatory framework for digital assets, which could explain the delay in decisive action.
Terrett speculated that the SEC’s broader review of various crypto ETF applications could be an attempt to avoid accusations of favoritism. “The SEC may be looking at everything because they don’t want to be seen as picking winners and losers,” he said.
Despite this development, Terrett said the regulator’s position remains unclear until it takes further action on these applications. “While it’s certainly notable that they didn’t reject these products outright, I don’t think we’ll know for sure what the SEC thinks until they start looking more into these applications,” he said.
He also made a statement regarding the status of ETF applications, stating that Grayscale has filed an application for a Cardano ETF, but the SEC has not yet considered it. However, the commission has officially considered applications for XRP, Solana, Dogecoin, and Litecoin (LTC).
*This is not investment advice.
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