SEC Postpones XRP, Dogecoin, And Solana ETFs for More Review

• The SEC wants more time to check if the new crypto ETFs meet key safety standards.
• Investors now have a short window to share their opinions on the proposed ETF products.
• Final approval is not expected soon as the agency aims to protect people and markets.

The U.S. Securities and Exchange Commission has postponed decisions on XRP, Dogecoin, and Solana ETFs, citing a need for further public input and regulatory clarity. These delays impact multiple fund proposals, including 21Shares Core XRP Trust, Grayscale Dogecoin Trust, and several Solana-linked funds. The commission stated that additional analysis is required to determine compliance with federal securities regulations aimed at protecting investors.

Ongoing Delays Highlight Regulatory Uncertainty

Earlier this year, NYSE and Cboe submitted filings to list these ETF products. The SEC has not yet indicated support or rejection. Instead, the Commission emphasized its commitment to investor protection and transparency by invoking Section 6(b)(5) of the Exchange Act. This rule requires exchanges to establish safeguards against fraud and market manipulation.

James Seyffart, a Bloomberg ETF analyst, commented that such delays are standard and should not be seen as negative signals. While XRP ETF deadlines are approaching, Seyffart believes approvals are unlikely before late June or early July. He added that early Q4 appears more realistic, reflecting the SEC’s caution toward digital asset funds beyond Bitcoin and Ethereum.

Public Comment Period Opened for Stakeholders

The SEC has initiated a 21-day public comment period following the filings’ appearance in the Federal Register. Rebuttals must be submitted within 35 days. This feedback window allows investors and market participants to weigh in on the risks and benefits of the proposed ETFs. While typical in ETF evaluations, this stage does not suggest a final outcome.

Each fund would offer direct exposure to its underlying asset, with shares issued in 10,000-share blocks. Coinbase Custody will hold assets for the 21Shares Core XRP Trust, which uses the CME CF XRP-Dollar Reference Rate. Grayscale’s XRP Trust will follow CoinDesk’s XRP Price Index, while its Dogecoin Trust tracks CoinDesk’s Dogecoin Price Index.

Related: SEC Set to Decide on Litecoin ETF as Approval Odds Surge

Can Crypto ETFs Advance Without Regulatory Clarity?

Spot crypto ETFs are gaining popularity among investors since they provide a way to invest in digital assets without needing to own them. The SEC approved Bitcoin and Ethereum ETFs last year, but is still hesitant about newer types of ETFs. Analysts predicted speedier choices, believing that it was a sign the government was closer to joining the financial integration.

Yet, the fact that things move slowly often signals that regulators are still holding back. Later outcomes may be delivered close to 2025. However, the SEC made clear that the delays are not a final decision regarding the applications.

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