The Securities and Exchange Commission (SEC) announced that Cboe BZX Exchange, Inc. has proposed a rule change to allow the listing and trading of shares in the Franklin XRP Fund under a specific rule for Commodity-Based Trust Shares. This fund, known as the Franklin XRP ETF, intends to offer investors a way to gain exposure to XRP, a digital asset, in a regulated exchange-traded format, and it highlights measures to ensure protection against fraud and market manipulation. The proposal argues that XRP's market characteristics make it resistant to manipulation, thus meriting exemption from certain regulatory agreements. Public comments on this proposal are being solicited and will be reviewed by the SEC before making any final decisions.
Simple Explanation
The SEC is thinking about letting a big company list a new type of investment, called the Franklin XRP Fund, so people can invest in a digital coin named XRP like they do with stocks. They want to make sure it's safe and fair, and they are asking people what they think before deciding.