The cryptocurrency landscape in the US is evolving rapidly, with increasing regulatory scrutiny and shifting market dynamics shaping the future of digital assets. Two key developments highlight this transformation: the recent push for an XRP exchange-traded fund (ETF) approval and strong criticism from prominent investor Jason Calacanis regarding XRP’s classification and market impact. While MEMX, a US securities exchange, has formally requested SEC approval to list an XRP ETF as a commodity-based trust, Calacanis has raised concerns about the token’s centralization and potential risks, warning that ETF approval could lead to market instability. As the debate over XRP’s status continues, the broader crypto ETF market is also expanding, with new filings for altcoins, meme coins, and index funds, reflecting growing institutional interest in the sector.
MEMX Seeks SEC Approval for XRP ETF Amidst Changing Crypto Landscape
The Members Exchange (MEMX), a US securities exchange, has officially submitted a request to the Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF) as a ”Commodity-Based Trust.” This filing marks a significant step forward in the ongoing effort to expand spot cryptocurrency ETFs beyond Bitcoin and Ethereum, solidifying XRP’s potential place among regulated digital asset investment products.
If approved, the XRP ETF would follow in the footsteps of spot Bitcoin and Ether ETFs, which debuted in the US last year. The application also shows the evolving regulatory landscape under President Donald Trump’s second term, which has so far been marked by a more favorable stance toward digital assets.
The SEC’s history with XRP has been contentious, dating back to December 2020 when the agency sued Ripple Labs, alleging that the company illegally sold XRP as an unregistered security. However, in August 2023, a US federal judge ruled that XRP itself is not inherently a security, though it could be classified as one depending on how it is sold. This partial legal victory for Ripple reshaped the conversation around XRP and created a clearer pathway for its potential classification as a commodity.
With MEMX’s filing, XRP could now be officially recognized in the same regulatory category as Bitcoin and Ethereum, both of which have already been approved for spot ETFs. This shift in regulatory perception signals a broader acceptance of digital assets and a possible thawing of the SEC’s historically rigid stance on crypto-related financial products.
The timing of the MEMX filing is particularly notable, as it comes amid a flurry of cryptocurrency ETF applications following Donald Trump’s re-election in November 2024. Trump, who has previously expressed skepticism about Bitcoin and cryptocurrencies, has since embraced the industry, pledging to make the US a global hub for digital assets. His administration has appointed several pro-crypto figures to key regulatory positions, raising expectations of a friendlier environment for blockchain innovation.
One such filing came from 21Shares, which submitted an application to list its Core XRP Trust ETF in November 2024—just days before Trump secured his second term. This move was quickly followed by another significant development on Feb. 6, when Cboe BZX, another major US securities exchange, filed for approval to list four spot XRP ETFs, including the 21Shares Core XRP Trust. The SEC acknowledged this application on Feb. 14, marking a crucial first step in the approval process.
The growing number of XRP-related ETF applications reflects increasing confidence within the crypto industry that regulatory green lights will soon extend beyond Bitcoin and Ethereum.
The Expanding Crypto ETF Market: More Than Just Bitcoin and Ethereum
Beyond XRP, the broader cryptocurrency ETF market is experiencing a surge in new filings. Industry players are preparing for what they see as an era of regulatory leniency, submitting applications for a wide range of digital asset ETFs. Among the recent filings are ETFs tracking meme coins such as Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK).
Additionally, traditional altcoins are also making their way into the ETF landscape. Issuers have submitted proposals for Solana (SOL) and Litecoin (LTC) ETFs, signaling growing institutional interest in diversifying beyond Bitcoin and Ethereum.
Meanwhile, the existing roster of approved ETFs is evolving. Spot Bitcoin and Ether ETFs are now seeking to introduce staking and in-kind redemptions, which could further enhance their appeal to investors looking for additional yield-generating opportunities.
The industry is also witnessing the emergence of crypto index ETFs, designed to provide diversified exposure to multiple digital assets in a single fund. The Hashdex Nasdaq Crypto Index US ETF, which began trading on Nasdaq on Feb. 14, became the first-ever spot crypto index fund, setting a precedent for future index-based products.
While the MEMX filing represents a significant milestone, the approval process is far from certain. The SEC will likely conduct a rigorous review, weighing the implications of classifying XRP as a commodity-based asset. Given the lingering regulatory uncertainty surrounding XRP and Ripple’s ongoing legal battle, the commission may proceed cautiously before granting final approval.
However, industry analysts suggest that Trump’s crypto-friendly administration could expedite the decision-making process, especially as his team continues to advocate for blockchain innovation and digital asset adoption.
If the XRP ETF is approved, it could pave the way for other altcoin-based ETFs, significantly expanding investment options in the crypto sector. Furthermore, it would serve as a major win for Ripple and its community, reinforcing XRP’s legitimacy as a regulated digital asset.
The MEMX’s request to list an XRP ETF signals a new era for cryptocurrency investment products in the US. With the SEC already acknowledging similar applications and the growing push for regulatory clarity, the landscape for crypto ETFs is rapidly evolving. Whether or not the XRP ETF gains approval, the surge in filings indicates a broader shift toward mainstream acceptance of digital assets.
Jason Calacanis Slams XRP as a ”Centralized Security,” Predicts Market Chaos if ETFs Are Approved
Renowned angel investor Jason Calacanis, known for his early investments in Uber, Robinhood, and other high-profile tech companies, has taken a strong stance against XRP, calling it a ”centralized controlled security.” His remarks add fuel to the ongoing debate surrounding the classification and legitimacy of Ripple’s XRP token, especially as the SEC considers spot XRP ETF applications.
Calacanis’ outspoken criticism comes amid increasing speculation that an XRP ETF could soon receive regulatory approval. However, the entrepreneur has warned that such a move would undermine US securities laws and introduce unprecedented market chaos, with retail investors bearing the brunt of the fallout.
As the crypto industry eagerly awaits the SEC’s decision on XRP ETFs, Calacanis has voiced concerns about the broader implications of such an approval. He argues that classifying XRP as a commodity-based asset—akin to Bitcoin and Ethereum—would nullify securities regulations, potentially leading to reckless financial behavior.
Despite his skepticism, market predictions suggest that an XRP ETF is becoming increasingly likely. According to Polymarket, a leading crypto prediction platform, the odds of an XRP ETF receiving SEC approval in 2025 stand at 78%. If approved, XRP could follow in the footsteps of Bitcoin and Ethereum ETFs, which have significantly expanded institutional access to cryptocurrency investments.
Calacanis’ criticism of XRP extends beyond ETF concerns—he also challenges the fundamental structure of the XRP Ledger (XRPL) and its governance.
According to him, XRP is the opposite of Bitcoin in terms of decentralization. While Bitcoin operates on a proof-of-work model secured by a vast network of independent miners, XRP transactions are processed by a list of ”trusted” validators on unique node lists (UNLs). This, he argues, grants Ripple outsized influence over the network, contradicting the decentralized ethos that underpins the broader crypto market.
One of the main sticking points for critics is Ripple’s massive XRP holdings. Earlier this year, Ripple CEO Brad Garlinghouse confirmed that the company still controls approximately $100 billion worth of XRP tokens—a figure that raises concerns about supply manipulation and centralized decision-making.
In contrast, XRP supporters argue that the network is neutral and decentralized, emphasizing that Ripple’s influence does not equate to direct control over the protocol. They often compare XRP to traditional commodities such as oil and diamonds, asserting that while centralized entities may hold significant reserves, it does not fundamentally change the nature of the asset.
Despite these defenses, XRP’s credibility took a hit earlier this month when the XRP Ledger briefly halted block production, fueling fresh skepticism about its reliability and decentralization.
Regulatory Uncertainty: Will the SEC Greenlight XRP ETFs?
The debate over XRP’s classification remains a thorny legal issue. The SEC has previously argued that XRP is a security, pointing to Ripple’s role in its initial distribution and its ongoing financial interests in the token. However, in August 2023, a US judge ruled that XRP itself is not inherently a security, though certain sales of the token may qualify as securities offerings.
This ruling created legal gray areas, leaving the SEC with limited options for pursuing regulatory action against XRP’s secondary market. As a result, ETF issuers—including 21Shares and Cboe BZX—have seized the opportunity to push for spot XRP ETF listings, banking on the evolving regulatory environment under President Donald Trump’s pro-crypto administration.
Trump has repeatedly expressed his desire to position the US as the global leader in crypto, and his administration’s appointments suggest a more industry-friendly approach. Many industry insiders believe that this shift in regulatory attitude could increase the likelihood of XRP ETF approvals, despite resistance from skeptics like Calacanis.
The battle over XRP ETFs is just one facet of a much larger crypto ETF boom. In the past year, the SEC has seen a surge in ETF applications, not just for Bitcoin and Ethereum, but also for meme coins like Dogecoin (DOGE) and Bonk (BONK), as well as altcoins like Solana (SOL) and Litecoin (LTC).
Existing Bitcoin and Ethereum ETFs are also evolving, with fund issuers pushing for staking options and in-kind redemptions to further integrate crypto into traditional finance.
If XRP ETFs gain approval, it could open the floodgates for other altcoin ETFs, fundamentally reshaping the investment landscape. However, critics warn that such rapid expansion could lead to insufficient oversight, price manipulation, and increased systemic risks.
Jason Calacanis’ warning about the potential ”chaos” that could follow an XRP ETF approval brings attention to the deep divisions in the crypto industry over centralization, regulation, and investor protection.
This article was originally Posted on Coinpaper.com
