Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 112

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 112
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, and by
failing to implement and maintain an adequate anti-money laundering program. In a March 2018 letter from FinCEN’s assistant
secretary for legislative affairs to U.S. Senator Ron Wyden, the assistant secretary indicated that under current law both the developers
and the exchanges involved in the sale of tokens in an initial coin offering (“ICO”) may be required to register with FinCEN
as money transmitters and comply with the 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.

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,