Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 107

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 107
---
 anti-money laundering regulations applicable to money transmitters.

OFAC of the U.S. Department
of the Treasury (the “U.S. Treasury Department”) has added digital asset addresses to the list of Specially Designated
Nationals whose assets are blocked, and with whom U.S. persons are generally prohibited from dealing. Such actions by OFAC, or by
similar organizations in other jurisdictions, may introduce uncertainty in the market as to whether XRP that has been associated with
such addresses in the past can be easily sold. This “tainted” XRP may trade at a substantial discount to untainted XRP. Reduced
fungibility in the XRP markets may reduce the liquidity of XRP and therefore adversely affect their price.

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In February 2020, then-U.S. Treasury
Secretary Steven Mnuchin stated that digital assets were a “crucial area” on which the U.S. Treasury Department has spent
significant time. Secretary Mnuchin announced that the U.S. Treasury Department is preparing significant new regulations governing
digital asset activities to address concerns regarding the potential use for facilitating money laundering and other illicit activities.
In December 2020, FinCEN, a bureau within the U.S. Treasury Department, proposed a rule that would require financial institutions
to submit reports, keep records, and verify the identity of customers for certain transactions to or from so-called “unhosted”
wallets, also commonly referred to as self-hosted wallets. In January 2021, U.S. Treasury Secretary nominee Janet Yellen stated
her belief that regulators should “look closely at how to encourage the use of digital assets for legitimate activities while curtailing
their use for malign and illegal activities.”

In February 2022,
Representative Warren Davidson introduced the “Keep Your Coins Act,” which is intended “[t]o prohibit Federal agencies
from restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and
for other purposes.”

In March 2022,
Senators Elizabeth Warren, Jack Reed, Mark Warner, and Jon Tester introduced the Digital Asset Sanctions Compliance Enhancement Act
in an attempt to ensure blacklisted Russian individuals and businesses do not use digital assets to evade economic
sanctions.

On January 23, 2025, President
Trump issued an executive order titled “Executive Order on Strengthening American Leadership in Digital Financial Technology”
that outlined the administration’s commitment to strengthening U.S. leadership in the