Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 108

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 108
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 the purview of the CFTC, what type of federal/state regulatory regime will
exist for payment stablecoins and the how the BSA will apply to digital asset providers. The Financial Innovation and Technology for the
21 Century Act (“FIT for the 21 Century Act”) advanced through the United States House of Representatives
in a vote along bipartisan lines.

The FIT for the 21
Century Act would require the SEC and the CFTC to jointly issue rules or guidance that would outline their process in delisting a digital
asset that they deem inconsistent with the CEA, federal securities laws and the FIT for the 21 Century Act. The bill, in
part, would also provide a certification process for blockchains to be recognized as decentralized, which would allow the SEC to challenge
claims made by token issuers about meeting the outlined standards.

Legislative efforts have
also focused on setting criteria for stablecoin issuers and what rules will govern redeemability and collateral. The Clarity for Payment
Stablecoins Act of 2023, as introduced by House Finance Committee Chair Patrick McHenry (the “McHenry Bill”), would
make it unlawful for any entity other than a permitted payment stablecoin issuer to issue a payment stablecoin. The McHenry Bill would
establish bank-like regulation and supervision for federal qualified nonbank payment stablecoin issuers. These requirements include capital,
liquidity and risk management requirements, application of the BSA and the Gramm-Leach-Bliley Act’s customer privacy requirements,
certain activities limits, and broad supervision and enforcement authority. The McHenry Bill would grant state regulators primary supervision,
examination and enforcement authority over state stablecoin issuers, leaving the Federal Reserve Board with secondary, backup enforcement
authority for “exigent” circumstances. The McHenry Bill would also amend the Investment Advisers Act of 1940 (the
“Advisers Act”), the 1940 Act, the 1933 Act, the Exchange Act and the Securities Investor Protection Act of 1970
to specify that payment stablecoins are not securities for purposes of those federal securities laws. On February 4, 2025, Sen. Bill
Hagerty introduced the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 Act – the GENIUS Act – cosponsored
by Senate Banking Chair Tim Scott and Sens. Kirsten Gillibrand and Cynthia Lummis, which would establish a U.S. regulatory framework
for payment stablecoins.