SEC delays decision on XRP, Solana, Litecoin, Dogecoin ETFs
The US Securities and Exchange Commission (SEC) has once again delayed its decision on a number of exchange-traded funds (ETFs) associated with popular cryptocurrencies like XRP, Solana, Litecoin, and Dogecoin. In a series of filings released on March 11, the SEC indicated it would take additional time to consider proposed rule changes necessary for these ETFs to gain approval.
Among the ETFs experiencing delays are Grayscale’s XRP ETF and the Cboe BZX Exchange’s spot Solana ETF, with the decisions on these proposals now postponed until May. This development underscores the SEC’s cautious approach to the burgeoning market of cryptocurrency ETFs, as it continues to navigate the regulatory landscape.
James Seyffart, a Bloomberg ETF analyst, mentioned in a post that despite the SEC’s decision to “punt” on several altcoin ETF filings, this was not alarming. He characterized it as a typical procedural step in the regulatory process, especially considering that Paul Atkins, the SEC chair appointed by President Donald Trump, has yet to be confirmed. Notably, Seyffart also reassured the market by stating that the odds of these ETFs receiving approval remain relatively high, particularly since the final decision deadlines extend until October.
In a related observation, fellow Bloomberg analyst Eric Balchunas noted that the trend of delays is not limited to altcoins; it also includes Ethereum (ETH) staking ETFs and various other ETFs focused on crypto. The regulatory environment seems to be experiencing a broader moment of hesitation.
This isn’t the first instance where the SEC has pushed back on ETF filings. In late February, it similarly extended its deadline for Cboe Exchange’s request to list options related to Ether ETFs. This pattern of delays coincides with a surge in altcoin ETF filings that followed Trump’s election and the resignation of former SEC Chair Gary Gensler, who maintained a notably strict regulatory stance during his tenure.
Notably, following Gary Gensler’s departure, some firms that were previously embroiled in legal quandaries with the SEC have seen their cases dismissed. Crypto exchange Gemini had its investigation concluded without enforcement action, while Cumberland DRW also had legal challenges dismissed in early March. This shift indicates a potential softening of the SEC’s stance under acting Chairman Mark Uyeda, who has proposed easing certain proposed regulations that would have widened regulatory oversight of crypto firms.
The ongoing developments suggest that while the SEC is meticulous in its approach to cryptocurrency-related investments, there remains a significant interest in altcoin ETFs moving forward. The resolution of these matters may not only influence market dynamics but could also set important precedents for the regulatory framework surrounding cryptocurrencies in the long term. As the market awaits the SEC’s decisions, industry stakeholders continue to navigate the complex landscape of cryptocurrencies and associated investment vehicles.
