Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 109

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 109
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 The GENIUS Act was passed by the U.S. Senate on June 17, 2025 and by the U.S. House of Representatives on July
17, 2025. It was signed into law by President Trump on July 18, 2025. Like the McHenry Bill, the GENIUS Act provides for a regulatory
framework where payment stablecoin issuers may be either a subsidiary of an insured bank, an uninsured depository institution or trust
bank, or a nonbank, and primarily regulated at either the federal or state level. It also provides for stablecoin reserve requirements
and require bank-like regulation for both bank and nonbank stablecoin issuers.

Several other bills have
advanced through Congress to curb digital assets as a payment gateway for illicit activity and money laundering. The “Blockchain
Regulatory Clarity Act” would provide clarity to the regulatory classification of digital assets, providing market certainty for
innovators and clear jurisdictional boundaries for regulators by affirming that blockchain developers and other related service providers
that do not custody customer funds are not money transmitters. The “Financial Technology Protection Act,” another bipartisan
measure, would set up an independent Financial Technology Working Group to combat terrorism and illicit financing in digital assets.
The “Blockchain Regulatory Certainty Act” aims to protect certain blockchain platforms from being designated as money-services
businesses. Both acts advanced through the House with bipartisan support.

In a similar effort to
prevent money laundering and stop digital asset-facilitated crime and sanctions violations, bipartisan legislation was introduced to
require DeFi services to meet the same anti-money laundering and economic sanctions compliance obligations as other financial companies.
DeFi generally refers to applications that facilitate peer-to-peer financial transactions that are recorded on blockchains. By design,
DeFi provides anonymity, which can allow malicious and criminal actors to evade traditional financial regulatory tools. Noting that transparency
and sensible rules are vital for protecting the financial system from crime, the “Crypto-Asset National Security Enhancement and
Enforcement (‘CANSEE’) Act” was introduced. The CANSEE Act would end special treatment for DeFi by applying the same
national security laws that apply to banks and securities brokers, casinos and pawn shops, and other digital asset companies like centralized
trading platforms. DeFi services would be forced to meet basic obligations, most notably to maintain anti-money laundering programs,
conduct due diligence on their customers, and report suspicious transactions to FinCEN.

Under regulations from
the New York State Department of Financial Services (“