Former Commodity Futures Trading Commission lawyer, Mike Selig, has brought attention to the case for an XRP exchange-traded fund (ETF) amidst the recent wave of applications for Ethereum ETFs with the U.S. Securities and Exchange Commission (SEC). Selig’s perspective takes into account key regulatory speeches, the SEC FinHub framework, and relevant court decisions pertaining to digital assets.
Selig argues that the developments surrounding Ethereum strengthen the case for it not being classified as a security, despite its initial sale. He references the Hinman speech, the SEC FinHub framework, and court rulings in Ripple and Terraform cases as factors that support the argument that Ethereum is not a security. In a tweet, Selig states, “If a spot BTC ETF is on the horizon, a spot ETH ETF can’t be far behind,” further reinforcing his views (August 2, 2023).
One key aspect that Selig’s comments bring to light is XRP’s legal clarity as a digital asset in the United States. XRP is the only digital asset that has been ruled as not a security in a case with the U.S. SEC. This ruling provides a favorable backdrop for the consideration of an XRP ETF. By closely examining the legal factors highlighted by Selig, it becomes apparent that the case for Ethereum’s non-security status has continued to grow stronger over time.
The speeches by William Hinman, the SEC’s Director of Corporation Finance, and the SEC FinHub framework have played essential roles in shaping the perspective that Ethereum is not a security. Additionally, judicial decisions regarding Ripple and Terraform cases have further solidified this viewpoint.
With XRP’s legal status settled, attention has now shifted to its potential as an ETF. Selig’s insights highlight that XRP has a strong foundation in terms of legal clarity, setting it apart from other digital assets. This raises the question of whether an XRP ETF could soon become a reality, opening up new investment opportunities in the cryptocurrency market. While time will ultimately reveal if these insights translate into action, the conversation has certainly begun.
