SEC Delays Decision on Popular Cryptocurrency ETFs

The U.S. Securities and Exchange Commission (SEC) has extended its review period for several cryptocurrency exchange-traded funds (ETFs), affecting proposals for XRP, Solana, Litecoin, and Dogecoin investment products.

In regulatory filings released on March 11, the SEC announced it needs additional time to evaluate proposed rule changes that would allow these cryptocurrency ETFs to begin trading on public exchanges.

SEC Extends Timeline for Major Crypto Assets

Bloomberg reported that grayscale’s XRP fund and most recently, the Cboe BZX Exchange’s spot Solana ETF milestones are due for completion in May. As of late all of these projects have faced increased risk of being postponed due to the SEC’s VDR – they seem to follow a pattern of detailing their scope of review under these conditions, however, they have adopted a rather slow pace in comparison to other jurisdictions. 

ETF analyst James Seyffart suggested otherwise on social media, stating that these far-reaching predictions over the delays stem from Estimates represent “Standard Patrician,” which means they are not likely to be confirmed within the next month). He also specified that Paul Atkins, Trump’s nominee for the SEC chair, has still not been given a vote in Congress, which is radically slowing any regulatory changes and implementations. 

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Market and Regulatory Context 

It is during these transitions the control of the market and the regulations is constantly unpredictable. These radical shifts come in the wake of Trump’s earlier victory, followed by his recent inauguration, subsequent resignation of Gensler all signal a blatant shift in enforcement on US crypto assets. 

Some of the goals that were set against the more intensive methodology of SEC enforcement are now considered to be legacy goals. Exchanges Gemini and Cumberland DRW are some of the more widely known and are now freely pursuing their businesses. Add to the mix that Margaret Uyeda openly operates as Chairman and is freehanded with loosening restrictions that would otherwise strengthen oversight of crypto exchange operations. 

There is no clear consensus now when an ETF is pending approval. It does emerge that the consideration and market will always keep their disruption pending for their modernization, exhibiting control over how new types of innovative financial tools are created and how discipline is imposed.