Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 146

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 146
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” and the U.S. Department of Treasury’s
July 7, 2022 “Framework for International Engagement of Digital Assets” and all policies, directives and guidance issued
pursuant to those items produced by the previous administration.

On January 21, 2025, the SEC’s
acting Chairman Mark T. Uyeda announced the SEC Crypto Task Force. The task force has an objective of developing a comprehensive and
clear regulatory framework for digital assets. The task force also seeks to establish a practical and achievable process for registration
of digital assets and design clearly defined disclosure requirements and frameworks.

The CFTC may have regulatory
jurisdiction over XRP derivatives markets, if these were to develop in the U.S. In addition, if the CFTC determines that XRP is a “commodity”
under the CEA and the rules thereunder, it may have jurisdiction to prosecute fraud and manipulation in the cash, or spot, market for
XRP. The CFTC may pursue enforcement actions relating to fraud and manipulation involving XRP and XRP markets. Beyond instances of fraud
or manipulation, the CFTC generally would not oversee cash or spot market exchanges or transactions involving XRP that do not use collateral,
leverage, or financing.

Various foreign jurisdictions
have, and may continue to, in the near future, adopt laws, regulations or directives that affect the XRP network, the XRP markets, and
their users, particularly XRP spot markets and service providers that fall within such jurisdictions’ regulatory scope. Foreign
jurisdictions including Canada, Germany, Sweden and Switzerland have also approved exchange-traded XRP products.

The effect of any future regulatory
change on the Trust or XRP is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the
Shares.

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THE TRUST AND XRP PRICES</div>

Overview of the Trust

The Trust is an exchange-traded
fund that issues Shares that trade on the Exchange. The Trust’s investment objective is to track the performance of XRP, as measured
by the performance of the Pricing Benchmark, adjusted for the Trust’s expenses and liabilities. In seeking to achieve its investment
objective, the Trust will hold XRP and will value its Shares daily based on the XRP price reported by the Pricing Benchmark. The Trust
is sponsored by 21Shares US LLC, a wholly owned subsidiary of 21co Holdings Limited (formerly known as Amun Holdings Limited