Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 137

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 137
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 General

As digital assets have
grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN,
SEC, CFTC, FINRA, the Consumer Financial Protection Bureau (“CFPB”), the Department of Justice, the Department of Homeland
Security, the Federal Bureau of Investigation, the IRS and state financial institution regulators) have been examining the operations
of digital asset networks, digital asset users and the digital asset spot markets, with particular focus on the extent to which digital
assets can be used to launder the proceeds of illegal activities or fund criminal or terrorist enterprises and the safety and soundness
of spot markets or other service-providers that hold digital assets for users. Many of these state and federal agencies have issued consumer
advisories regarding the risks posed by digital assets to investors.

Recent events, including among
others the bankruptcy filings of FTX and its subsidiaries, Three Arrows Capital, Celsius Network, Voyager Digital, Genesis, BlockFi and
others, and other developments in the digital asset markets, have resulted in calls for heightened scrutiny and regulation of the digital
asset industry, with a specific focus on intermediaries such as digital asset exchanges, platforms, and custodians.

In addition, federal and
state agencies, and other countries have issued rules or guidance about the treatment of digital asset transactions or requirements for
businesses engaged in digital asset activity. President Trump’s January 23, 2025 Executive Order, titled “Strengthening American
Leadership in Digital Financial Technology”, aimed to reorient the federal governments approach to digital assets. The Executive
Order emphasized the importance of the digital asset industry in innovation and economic development, and outlined policies to support
the growth and use of digital assets, blockchain technology and related technologies. President Trump’s order also revoked former
President Biden’s March 9, 2022 Executive Order, titled, “Responsible Development of Digital Assets” 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