The XRP community is fairly happy after revelations about the recent Teucrium XRP ETF listing, which technically went live without direct approval from the U.S. Securities and Exchange Commission (SEC). Analysts, journalists, and legal experts are weighing in, and the story highlights once again how murky the regulatory landscape for crypto ETFs remains.
It all started when analyst Chad pointed out that the Teucrium XRP ETF wasn’t explicitly approved by the SEC. Instead, the agency allowed the statutory deadline to pass without a decision, meaning the fund went effective automatically. “Silence is compliance,” he wrote on X, sparking fresh debate across Crypto Twitter.
Journalist Eleanor Terrett later clarified what many were asking – does this mean spot crypto ETFs, including XRP, could also slip through the cracks? Her answer: not quite.
The Teucrium XRP ETF holds Treasuries, cash, and swap receivables, and is registered under the Investment Company Act of 1940. That structure means the SEC doesn’t have to actively approve it, only let the statutory period pass. Futures ETFs often work in a similar way.
Adding some context here for those asking if this applies to all ETFs, including the spots.
— Eleanor Terrett (@EleanorTerrett) October 3, 2025
The short answer is no. The Teucrium $XRP ETF holds Treasuries, cash, and swap receivables, so it was registered under the 40 Act, meaning the @SECGov didn’t need to actively approve it,… https://t.co/H8EiXVcOHp
But spot ETFs are different. They fall under the Securities Act of 1933 as commodity trusts. That means they require direct, explicit approval from the SEC before they can trade. So a future spot XRP, LTC, or SOL ETF won’t be possible without an active green light from regulators.
Shutdown Complications
Pro‑XRP lawyer Bill Morgan added another wrinkle. He noted that while ETF approvals could be delayed by the ongoing U.S. government shutdown, not all of the SEC’s operations depend on congressional funding. The Division of Corporation Finance, which handles ETF filings, may still move forward with decisions if the shutdown doesn’t drag on too long.
Morgan summed it up by saying late‑October ETF approvals are not necessarily “off the table” – but with crypto, surprises are always possible.
The episode underscores both the progress and uncertainty surrounding crypto ETFs. On the one hand, the Teucrium XRP ETF going live without active rejection shows that regulatory pathways exist, even if unconventional. On the other hand, spot ETF hopefuls will still have to wait for the SEC to actively sign off.
For XRP holders, the bigger question is whether this quiet step could pave the way for more direct approvals down the line – or if it’s just another reminder that the path to mainstream ETF adoption remains tangled in regulatory red tape.