SEC Delays Approval of Several Cryptocurrency Spot Exchange-Traded Funds

The Securities and Exchange Commission delayed the approval of several cryptocurrency spot exchange-traded funds Tuesday, including Litecoin LTC/USD, Solana SOL/USD, XRP XRP/USD, and Dogecoin DOGE/USD.

The Securities and Exchange Commission has delayed the approval of several cryptocurrency spot exchange-traded funds, including Litecoin LTC/USD, Solana SOL/USD, XRP XRP/USD, and Dogecoin DOGE/USD.

What Happened: The regulator postponed decisions on Canary Solana Trust ETF and VanEck Solana Trust ETF, 21Shares Core Solana ETF, Canary XRP Trust ETF, and Bitwise XRP ETF. It also postponed Grayscale Investments' applications for XRP, DOGE, ADA, and LTC.

The SEC previously acknowledged the 19b-4 filings, a mandatory step to list any ETF on Wall Street. Following the Form 19b-4 application, the agency usually has 45 days (which can be extended to another 45 days) to decide on the proposed rule change. The SEC can further extend the timeline with additional review periods of 45 and 60 days.

According to a leading Bloomberg analyst, James Seyffart, the delay in approval was anticipated.

"It's expected as this is standard procedure, & [Paul] Atkins hasn't even been confirmed yet. This doesn't change our (relatively high) odds of approval. Also note that the final deadlines..." Seyffart noted.

In addition to these ETFs, the SEC also delayed decisions on applications related to in-kind creation and redemption for iShares Bitcoin Trust ETF IBIT and Fidelity Wise Origin Bitcoin Fund FBTC.

See Also: Eric Trump's 'Great Time' To Buy ETH Backfires? Ethereum Plunges 30% Since His Buy Call

Why It Matters: A flurry of spot exchange-traded funds have been filed since President Donald Trump took office in January, hoping to benefit from what they perceive as a cryptocurrency-friendly regime.

Trump signed a historic executive order creating a Strategic Bitcoin BTC/USD Reserve and a U.S. Digital Asset Stockpile last week. In line with this, legislation was tabled in the House of Representatives on Tuesday, proposing the acquisition of one million BTC over five years.