Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 109

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 109
---
 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 the 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 enforcement authority. The McHenry Bill would grant state regulators primary supervision,
examination and enforcement authority over state stablecoin issuers, leaving the Federal Reserve Board with secondary, backup enforcement
authority for “exigent” circumstances. The McHenry Bill would also amend the Investment Advisers Act of 1940 (the
“Advisers Act”), the 1940 Act, the 1933 Act, the Exchange Act and the Securities Investor Protection Act of 1970
to specify that payment stablecoins