Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 106

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 106
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 significant
volatility, and contagion risk. Although banking organizations are not prohibited from digital-asset related activities, the agencies
have expressed significant safety and soundness concerns with business models that are concentrated in digital-asset related activities
or have concentrated exposures to the digital-asset sector.

U.S. federal and state
regulators have issued reports and releases concerning digital assets, including XRP and digital asset markets. Further, in 2023 the
House of Representatives formed two new subcommittees: the Digital Assets, Financial Technology and Inclusion Subcommittee and the Commodity
Markets, Digital Assets, and Rural Development Subcommittee, each of which were formed in part to analyze issues concerning digital assets
and demonstrate a legislative intent to develop and consider the adoption of federal legislation designed to address the perceived need
for regulation of and concerns surrounding the digital asset industry. However, the extent and content of any forthcoming laws and regulations
are not yet ascertainable with certainty, and it may not be ascertainable in the near future. It is difficult to predict how these and
other related events will affect us or the digital asset business.

It is not possible to predict
whether Congress will grant additional authorities to the SEC or to other regulators, what the nature of such additional authorities
might be, how they might impact the ability of digital asset markets to function or how any new regulations that may flow from such authorities
might impact the value of the digital assets generally and XRP held by the Trust more specifically. The consequences of increased federal
regulation of digital assets and digital asset activities could have a material adverse effect on the Trust and the Shares.

FinCEN requires any administrator
or exchanger of convertible digital assets to register with FinCEN as a money transmitter and comply with the anti-money laundering regulations
applicable to money transmitters. In 2015, FinCEN assessed a $700,000 fine against a sponsor of a digital asset for violating several
requirements of the BSA by acting as a money services business and selling the digital asset without registering with FinCEN, and by
failing to implement and maintain an adequate anti-money laundering program. In a March 2018 letter from FinCEN’s assistant
secretary for legislative affairs to U.S. Senator Ron Wyden, the assistant secretary indicated that under current law both the developers
and the exchanges involved in the sale of tokens in an initial coin offering (“ICO”) may be required to register with FinCEN
as money transmitters and comply with the