The SEC Just Elevated XRP To A Status Previously Reserved For Bitcoin And Ethereum

The U.S. SEC recently highlighted an NYSE proposal that places XRP alongside Bitcoin and Ethereum as eligible assets under the generic listing standards. This is a positive for the altcoin, which was once considered a security by the SEC under Gary Gensler. 

XRP Named as Eligible Asset Alongside Bitcoin and Ethereum In SEC Filing

The SEC published a notice seeking comments on the NYSE’s proposed rule change for crypto ETFs to hold 80% of their net asset value (NAV) in eligible assets under the generic listing standard. The Exchange had mentioned XRP alongside Bitcoin and Ethereum as eligible crypto assets to which this proposed rule change will apply. 

This notably reemphasizes the generic listing standard for crypto ETFs, which the SEC approved last year, under which it classified the token as an eligible asset for faster ETF approvals. This marked a significant shift from the previous SEC administration under Gary Gensler, when the Commission signaled that it could only approve Bitcoin and Ethereum ETFs because they were the only two assets that it considered non-securities. 

XRP has also received much-needed clarity under this SEC administration, with the Commission issuing joint Token Taxonomy guidance with the U.S. CFTC, under which XRP, Bitcoin, Ethereum, and other major tokens were classified as commodities. This position is also expected to be codified through the CLARITY Act. 

This regulatory clarity from the SEC and the proposed CLARITY Act provides a boost for the altcoin, which already secured regulatory clarity when Judge Analisa Torres declared that the token wasn’t a security in the SEC’s lawsuit against Ripple. The ruling had notably played a key role in the SEC’s approval of the XRP ETFs, as the Commission could not reject these applications on the ground that they were securities. 

Ripple CEO Praises SEC For CLARITY

While speaking at the XRP Las Vegas Conference, Ripple CEO Brad Garlinghouse praised the SEC for its efforts towards providing regulatory clarity. He noted that the current administration under Paul Atkins had provided more clarity to the crypto industry in a year than Gary Gensler’s administration did in four years. 

The Ripple CEO also reiterated that they are still all in on the altcoin, noting that they are the largest holder in the world and are the most interested party in seeing the token successful. Meanwhile, he addressed Cardano founder Charles Hoskinson’s criticism that Ripple’s businesses don’t benefit holders in any way. Garlinghouse stated that they are not prioritizing going public at the moment, but teased a special package for the community when they decide to do so.

At the time of writing, the XRP price is trading at around $1.38, up in the last 24 hours, according to data from CoinMarketCap.

Featured image from Freepik, chart from Tradingview.com

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