SEC Delays Decision on Cryptocurrency Spot Exchange-Traded Funds (ETFs)

The US Securities and Exchange Commission (SEC) has again delayed its decision on several cryptocurrency spot exchange-traded funds (ETFs) as Franklin Templeton files for its own XRP ETF.

The US Securities and Exchange Commission (SEC) has reportedly postponed its verdict on several cryptocurrency spot exchange-traded funds (ETFs) yet again, while Franklin Templeton has applied for its own XRP ETF.

Also Read: Institutions Are Pivoting to Crypto: A Deep Dive

Potential ETF approvals, which were pending for :

* ARK 21S/CCIV’s application for a bitcoin ETF,

* The DEFIG ETF from Shapeshift,

* The Union Bank, N.A. application for an Ethereum ETF, and

* Finally, the Harvest BTC / ETH Strategy ETF,

have all been pushed back until May 2025.

The SEC extended its review process, citing the need for further evaluation, and has the authority to extend decision deadlines if necessary.

These latest developments come as the SEC announced a series of roundtables to discuss regulatory issues in the crypto space, beginning with "How We Got Here and How We Get Out – Defining Security Status."

The first event is set for March 21, 2025, at the SEC’s headquarters in Washington, D.C., and will be led by SEC Commissioner Hester Peirce.

The public forum will delve into the classification of crypto assets, the regulatory regimes that should apply, and potential enforcement mechanisms.

Meanwhile, Franklin Templeton has entered the XRP ETF race with its own filing for a spot token ETF.

"The Franklin XRP ETF series of the Trust (the “Fund”) issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Fund consist primarily of XRP held by a custodian on behalf of the Fund. The Fund seeks to reflect generally the performance of the price of XRP," the $1.6 trillion asset manager said in its application.

XRP's price briefly soared more than 10% following the news to $2.25 but has since dropped to $2.16. The token is down nearly 10% over the week.