SEC Appeals, XRP ETF Update, and IPO Buzz

• Ripple and SEC’s legal battle takes a new turn as the US regulator finally files its Form C two weeks after submitting its Notice of Appeal. 
• Bitwise has also updated its S-1 registration with the SEC to get approval for its XRP ETF application. 

Ripple (XRP) was in the headlines in the past few days for multiple reasons ranging from the recent submission of Form C by the US Securities and Exchange Commission (SEC), Bitwise’s XRP ETF updates, and a potential IPO launch. In this article, we will revisit some of this news with detailed reports.

SEC Files Form C

According to our report yesterday, October 18, the SEC finally managed to file its Civil Appeal Pre-Argument Statement (Form C) with the Second Circuit Court of Appeals. As we explained, the filing seeks to contest the 2023 ruling by Judge Analisa Torres which clarified that the programmatic sales of XRP on digital asset trading platforms did not violate federal securities laws.

Another target of the SEC’s appeal is the personal sales and offers of XRP by Ripple executives – Brad Garlinghouse and Chris Larsen. The Agency is also contesting the ruling that XRP’s distribution to employees and others did not constitute securities violations. Meanwhile, Ripple is expected to file a cross-appeal next week. For outspoken legal expert Jeremy Hogan, SEC’s appeal is just a “Chicken Move”.

What I like? This appeal is about money. The injunction could change if Ripple were to lose, but only indirectly (as to order compliance).

Bitwise Updates XRP ETF Application

CNF recently disclosed that Bitwise has filed a spot XRP ETF application with the SEC. According to the latest report, the asset manager has subjected its submission to modification by updating its S-1 registration. According to our research, the latest update refines the custody arrangement, Trust structure, and share creation and redemption method.

BREAKING: Bitwise files updated $XRP ETF S-1 form pic.twitter.com/7zMRyd9jvx

— Crypto Briefing (@Crypto_Briefing) October 16, 2024

Based on the report at our disposal, the XRP Custodian is meant to store the Trust’s assets in cold storage. This implies that only a small amount would be moved to hot storage. The Custody Agreement would also ensure that the asset is kept separate from the other holdings of the Custodian.

According to reports, the new structure would streamline the procedure of generating and redeeming shares in blocks of 10,000 units. Bitwise has also hired a Prime Execution Agent to ensure that short-term funding in the form of Trade Credits is provided. On top of that, he would ensure that XRP purchases across multiple trading platforms are perfectly facilitated.

Potential Ripple IPO

The Initial Public Offering (IPO) of Ripple has been in the news for some time now. However, Ripple’s boss, Brad Garlinghouse, triggered a massive buzz around the initiative by disclosing that the team has been thinking about it for a while. According to him, this option remains open and could be part of the commitment to maintain shareholder liquidity and company valuation. On the other side, Garlinghouse believes that IPO is currently not a high priority on the Ripple agenda.

Against the backdrop of these developments, XRP is still struggling to reclaim its $0.55 level as it currently trades at $0.54 with a 30-day decline of 6%.

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