Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 112

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 112
---
 stablecoin
issuer” would be eligible to issue payment stablecoins. Additionally, payment stablecoins would be exempt from the federal securities
requirements, including the 1933 Act, the Exchange Act, and the 1940 Act.

<div align='center'>50</div>

In June 2022, Senators
Kirsten Gillibrand and Cynthia Lummis introduced the “Responsible Financial Innovation Act,” which was drafted to “create
a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency and robust
consumer protections while integrating digital assets into existing law.” Importantly, the legislation would assign regulatory
authority over digital asset spot markets to the CFTC and codify that digital assets that meet the definition of a commodity, such as
bitcoin and ether, would be regulated by the CFTC.

In 2023, Congress continued
to consider several stand-alone digital asset bills, including a formal process to determine when digital assets will be treated as either
securities to be regulated by the SEC or commodities under the purview of the CFTC, what type of federal/state regulatory regime will
exist for payment stablecoins and how the BSA will apply to digital asset providers. The Financial Innovation and Technology for the
21 Century Act (“FIT21”) advanced through the United States House of Representatives in a vote along bipartisan
lines.

FIT21 would require the SEC
and the CFTC to jointly issue rules or guidance that would outline their process in delisting a digital asset that they deem inconsistent
with the CEA, federal securities laws and FIT21. The bill, in part, would also provide a certification process for blockchains to be
recognized as decentralized, which would allow the SEC to challenge claims made by token issuers about meeting the outlined standards.

Legislative efforts have also
focused on setting criteria for stablecoin issuers and what rules will govern redeemability and collateral. The Clarity for Payment Stablecoins
Act of 2023, as introduced by House Finance Committee Chair Patrick McHenry (the “McHenry Bill”), would make it
unlawful for any entity other than a permitted payment stablecoin issuer to issue a payment stablecoin. The McHenry Bill would establish
bank-like regulation and supervision for federal qualified nonbank payment stablecoin issuers. These requirements include capital, liquidity
and risk management requirements, application of the BSA and the Gramm-Leach-Bliley Act’s customer privacy requirements, certain
activities limits, and broad supervision and