The rumor spread fast, amplified by speculation that a lapse in SEC operations meant automatic clearance for pending applications. But as it turns out, the story was built on a fundamental misunderstanding of how ETF rules actually work.

The theory suggested that Teucrium’s XRP ETF filing had gone live by default – not through a regulatory decision, but because the statutory review period had supposedly expired while the SEC remained partially closed. However, regulatory experts quickly dismantled the claim.

What Actually Happened Behind the Scenes

According to crypto journalist Eleanor Terrett, the Teucrium filing never required an “active approval” in the first place. She explained that the product falls under the Investment Company Act of 1940, which governs funds backed by traditional financial instruments like Treasury securities and derivatives. Under that framework, filings become effective automatically after a set period – regardless of shutdowns – making the claim of a new approval meaningless.

Terrett further clarified that the process for spot cryptocurrency ETFs, such as those linked to Bitcoin, Solana, or XRP itself, is entirely different. These products are registered under the Securities Act of 1933 as commodity trusts and cannot be listed or traded without explicit authorization from the SEC. In other words, a government shutdown doesn’t grant a free pass to the crypto market.

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Spot ETFs Still on Pause

All spot ETF reviews remain frozen until the SEC returns to normal operations. Only enforcement and emergency actions are currently being handled by a skeleton staff. That means any pending crypto ETF application – including XRP’s – will have to wait for formal evaluation once the agency reopens.

The episode underscores how quickly misinformation can travel in crypto circles, especially during periods of political or regulatory uncertainty. For now, the bottom line is clear: the XRP ETF isn’t approved, automatically or otherwise – and the SEC’s silence is just that, silence.

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