Top Asset Managers Invited to File XRP ETF, Daring SEC Chair to Reject

A notable personality in the crypto scene invites other industry leaders to submit applications for an XRP exchange-traded fund (ETF), daring the U.S. SEC to decline assenting to it.

In a recent post on X, Yassin Mobarak, the founder of Dizer Capital, encouraged financial asset managers to pursue the creation of an XRP spot ETF by submitting applications with the U.S. SEC.

Mobarak’s invitation banked on the fact that XRP is a token with clear regulatory status in the U.S.

Given the established regulatory standing of XRP, the Dizer Capital founder urged individuals to pursue the XRP investment vehicle to challenge the SEC chairman’s decision. In his words:

“Someone should call Gary Gensler’s bluff, file an XRP spot ETF application, and dare the SEC to reject it.”

Someone should call @GaryGensler 's bluff, file an $XRP spot ETF application, and dare @SECGov to reject it.

If gets rejected, then file the lawsuit. $XRP is inherently a non-security asset BY LAW today! https://t.co/BOtn7OyuFd

— Yassin Mobarak ? (@Dizer_YM) January 16, 2024

What Happens After SEC Declines the XRP Application?

If the SEC were to decline the XRP spot ETF application, Mobarak suggested a proactive response: filing a lawsuit. 

This recommendation is grounded in the fact that a U.S. federal court has already ruled that XRP inherently qualifies as a non-security. Therefore, legal action could come up to challenge the SEC’s decision in case of rejection.

Significantly, the Dizer Capital founder issued this call amid the SEC’s recent assent to Bitcoin spot ETF.

Besides, some of the firms that have secured regulatory clearance to list Bitcoin ETFs have pending applications for a similar investment product involving Ethereum (ETH). Notably, the SEC’s greenlight or denial of Ethereum spot ETFs is due by May. 

Meanwhile, no genuine XRP spot ETF application is under review. A bogus move for XRP exchange-traded fund surfaced last November, temporarily impacting XRP’s value. Since then, calls for authentic XRP ETF have intensified.

Prominent chief executive officers such as Larry Fink of BlackRock and Brad Garlinghouse of Ripple have explicitly been asked about the prospects of XRP ETF. However, both of them have declined to comment on the subject.