A false XRP trust filing linked to BlackRock has raised questions about its potential impact on the Securities and Exchange Commission's (SEC) decision-making process regarding spot Bitcoin exchange-traded funds (ETFs). While some industry observers express concerns about the incident, many experts believe it is unlikely to significantly sway the SEC's stance on Bitcoin ETFs. Nevertheless, the incident does draw attention to the SEC's ongoing concerns about market manipulation and fraud in the cryptocurrency space. It highlights the importance for ETF applicants to demonstrate robust safeguards against such issues.
In related news, the latest XRP Ledger introduces several key changes and enhancements. Notably, it introduces APIV2, an upgraded API version that offers more functionalities than traditional APIs. Additionally, the upgrade addresses Transaction Per Second (TPS) performance and stability, focusing on improving consensus stability and introducing asynchronous writing of batches to NuDB.
Furthermore, it introduces a new RPC method, allowing software apps to connect effectively within the XRPL ecosystem. It also includes bug fixes and code refinements to enhance the ledger's readability and efficiency. Alongside these updates, an X user by the name of Krippenreiter presents four proposed amendments aimed at improving the XRPL ecosystem. These amendments cover various aspects, such as bidirectional connectivity to XRPL assets, sovereign identity solutions, addressing payment engine issues, and clarifying authorized trust line establishment.
Fake XRP Trust Filing Incident: Unlikely to Impact SEC's Bitcoin ETF Decision
In a surprising turn of events, the cryptocurrency world was briefly sent into a frenzy on Nov. 13 when a falsified BlackRock XRP trust filing emerged, causing XRP's price to spike and then plummet as the truth behind the filing was uncovered. While this incident has raised eyebrows across the industry, experts believe that it is unlikely to have a significant impact on the Securities and Exchange Commission's (SEC) decision regarding spot Bitcoin exchange-traded funds (ETFs).
The SEC's stance on Bitcoin ETFs has been a subject of scrutiny and debate for some time. The regulatory body has repeatedly expressed concerns about the potential for market manipulation in the Bitcoin market, leading to the rejection of previous spot Bitcoin ETF applications due to perceived deficiencies in market manipulation controls.
Bloomberg ETF analyst Eric Balchunas expressed his doubts that the fake XRP filing would sway the SEC's final decision on Bitcoin ETFs. "We doubt this will impact the situation with spot Bitcoin ETFs," Balchunas said. However, he acknowledged that the incident could inadvertently validate the SEC's concerns about fraud and manipulation. "There's no doubt it is a bad look that arguably validates the 'fraud and manipulation' that the SEC used as grounds for past denial."
The falsified filing, which appeared on the Delaware list of corporations website, showed BlackRock's creation of the "iShares XRP Trust," seemingly as a precursor to launching an ETF. The news led to a rapid 12.3% spike in XRP's price within just 30 minutes, only to plummet just as quickly once it was revealed as a hoax by Balchunas and others. BlackRock subsequently confirmed that the filing was made by an imposter posing as its managing director, Daniel Schwieger.
Michael Bacina, a partner at the law firm Piper Alderman and chair of the industry group Blockchain Australia, expressed skepticism that the SEC would use this isolated incident as a legal basis for postponing ETF applications already under consideration. "It's unlikely an isolated rumor such as this would provide a legal basis for delaying ETF applications already being considered, particularly where they are already subject to deadlines," he explained.
Lucas Kiely, the CEO of wealth management platform Yield App, echoed this sentiment, stating that the fake XRP filing is unlikely to sway the SEC's decision. He called for calm within the community, suggesting that the incident is unlikely to play any significant role in the ETF approval process.
Nevertheless, some experts warn that events like the fake XRP trust filing could potentially undermine efforts to launch a Bitcoin ETF in the United States. James Edwards, a analyst at Australian fintech firm Finder, argued that the burden would now be on ETF applicants like BlackRock to demonstrate their ability to protect clients from market manipulation and fraud in the opaque markets. Edwards noted that the SEC's previous rejections of Bitcoin ETFs were grounded in concerns about investor protection.
In response to the incident, BlackRock has taken steps to rectify the situation and ensure that its genuine ETF applications are not tainted by the fraudulent filing. BlackRock had previously filed for a spot Ether ETF on November 9, which is now awaiting regulator approval, in addition to its spot Bitcoin ETF application filed in June.
The fake XRP trust filing will be referred to the Delaware Department of Justice for further investigation, shedding light on the potential legal consequences for those responsible for the hoax. While the incident has certainly raised questions about the state of regulatory scrutiny and security within the cryptocurrency industry, it remains to be seen whether it will have a lasting impact on the quest for Bitcoin ETF approval in the United States.
XRP Ledger Gets Major Upgrade with New Features and Proposed Amendments
An enthusiastic XRP supporter, known as Krippenreiter on X (formerly Twitter), recently announced the launch of the latest version of the XRP Ledger. This upgrade comes with core updates and introduces new functionalities that are expected to enhance the XRPL ecosystem.
XRP Ledger's Latest Upgrade
Krippenreiter shared the exciting news on Nov. 12, providing insight into the key changes and improvements that have been incorporated into the upgraded XRP Ledger. The update brings forth four distinct changes to the ledger, as well as four proposed amendments that could shape the future of the XRPL.
According to Krippenreiter, a significant breaking change is on the horizon in the form of a rippled version update, with plans for it to be available to all node operators by Nov. 13. This update brings a fresh API version, APIV2, which promises more functionalities compared to traditional APIs.
The introduction of APIV2 includes the implementation of the DeliverMax feature, the addition of error messages, and the removal of certain API methods, streamlining the XRPL's interface and improving user experience.
Enhancements in Transaction Per Second (TPS) Performance and Stability
Krippenreiter also highlighted improvements in the Transaction Per Second (TPS) performance and stability of the XRP Ledger. These upgrades were originally proposed by a community member known as MarkTravis15 on X and encompass three significant changes aimed at enhancing the ledger's performance.
The proposed changes revolve around bolstering consensus stability, implementing asynchronous writing of batches to NuDB (a component of the ledger's database system), and introducing periodic intervals for applying transaction batches. These enhancements are expected to make the XRPL more robust and efficient.
New RPC Method and Other Updates
Another noteworthy addition to the XRP Ledger is the introduction of a new RPC (Remote Procedure Call) method. This new method allows software applications to connect effectively to a specific network within the XRPL ecosystem by requesting information from the node. In addition to these improvements, the latest update includes bug fixes and refactoring or rewriting of code to enhance readability and efficiency.
Proposed Amendments and Community Involvement
While unveiling the upgrades in the latest version of the XRP Ledger, Krippenreiter also drew attention to a series of proposed amendments. These amendments, if accepted by the community and subsequently implemented, could have a substantial positive impact on the XRPL ecosystem.
The first amendment revolves around the concept of federated side chains, which would enable bidirectional connectivity to XRPL assets. This proposal aims to promote interoperability within the XRP ecosystem by leveraging witness servers like Xahau, CBDCL, and others.
The second amendment introduces a sovereign identity solution on XRPL called decentralized identifiers (DID), enhancing the platform's utility and security. Meanwhile, the third amendment seeks to address issues related to the XRPL payment engine, providing effective solutions to rectify problems that may arise.
The final proposed amendment aims to clarify the establishment and permission of authorized trust lines. This proposal specifically addresses scenarios in which both issuers and users enable specific settings on their accounts, ensuring transparency and efficiency within the ecosystem.
As the XRP Ledger continues to evolve and expand its capabilities, community involvement remains crucial in shaping its future. With these updates and proposed amendments, the XRPL ecosystem appears poised for further growth and innovation.
Price Overview
At press time, CoinStats indicated that XRP suffered a 4.81% loss over the past 24 hours. Consequently, the remittance token was trading hands at $0.630331.
Price chart for XRP (Source: CoinStats)
The altcoin was also outperformed by Bitcoin (BTC). CoinStats data showed that XRP was down 2.25% against the market leader.
