Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 60

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 60
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, and in
extraordinary circumstances, to liquidate the Trust. If Coinbase Custody or Coinbase Inc. fails to perform the functions they perform
for the Trust, the Trust may be unable to operate or create or redeem Baskets, which could force the Trust to liquidate or adversely affect
the price of the Shares.

In March 2023, the Prime
Broker and its parent, Coinbase Global, Inc. (such parent, “Coinbase Global” and together with Coinbase Inc., the “Relevant
Coinbase Entities”) received a “Wells Notice” from the SEC staff stating that the SEC staff made a “preliminary
determination” to recommend that the SEC file an enforcement action against the Relevant Coinbase Entities alleging violations
of the federal securities laws, including the Exchange Act and the 1933 Act. According to Coinbase Global’s public reporting
company disclosure, based on discussions with the SEC staff, the Relevant Coinbase Entities believe these potential enforcement actions
would relate to aspects of the Relevant Coinbase Entities’ Coinbase Prime service, spot market, staking service Coinbase Earn,
and Coinbase Wallet, and the potential civil action may seek injunctive relief, disgorgement, and civil penalties. In June 2023, the
SEC filed a complaint against the Relevant Coinbase Entities in federal district court in the Southern District of New York, alleging,
inter alia: (i) that Coinbase Inc. has violated the Exchange Act by failing to register with the SEC as a national securities
exchange, broker-dealer, and clearing agency, in connection with activities involving certain identified digital assets that the SEC’s
complaint alleges are securities, (ii) that Coinbase Inc. has violated the 1933 Act by failing to register with the SEC the offer
and sale of its staking program, and (iii) that Coinbase Global is jointly and severally liable as a control person under the Exchange Act
for Coinbase Inc.’s violations of the Exchange Act to the same extent as Coinbase Inc. On February 27, 2025, the SEC announced
that it had filed a joint stipulation with Coinbase Inc. and Coinbase Global Inc. to dismiss the ongoing civil enforcement action against
the two entities. The SEC’s complaint against the Relevant Coinbase Entities did not allege that XRP is offered or sold as a security
nor did it allege that Coinbase Inc’s activities involving XRP caused the alleged registration violations, and the XRP Custodian
was not named as a defendant. In the event of any future SEC or