Regulators' Extended Silence on XRP ETF Fuels Industry Frustration

The U.S. Securities and Exchange Commission (SEC) has extended the decision deadline for the Franklin XRP Exchange-Traded Fund (ETF) application, delaying its ruling from the previously expected timeframe. The extension provides additional time for regulatory review and does not necessarily indicate a favorable or unfavorable outcome for the proposed fund. The move reflects the SEC’s ongoing cautious approach to cryptocurrencies and related investment products.

The Franklin XRP ETF, proposed by Franklin Advisers, aims to offer investors exposure to XRP, the native token of the RippleNet platform. The fund would track the performance of XRP and be listed on a major exchange, potentially making it one of the first U.S.-listed ETFs to directly invest in a specific cryptocurrency. This development aligns with growing investor interest in digital assets and the increasing push for regulated investment vehicles in the crypto market.

The SEC’s decision-making process has been scrutinized by industry participants, who argue that delays hinder market innovation and provide uncertainty for potential investors. The extension of the decision deadline for the Franklin XRP ETF is consistent with the agency’s broader approach to ETF applications involving digital assets. Several other XRP ETF proposals have also faced extended review periods, with some receiving rejections in previous attempts.

Analysts suggest that the SEC’s cautious stance may stem from regulatory uncertainties surrounding the classification of XRP and other cryptocurrencies. While the agency has not yet provided a definitive ruling on XRP’s status as a security, its actions suggest a preference for further analysis before approving products that directly expose investors to the token. This uncertainty has implications for market participants seeking to access the crypto space through traditional investment structures.

The extended timeline for the Franklin XRP ETF decision underscores the evolving regulatory landscape for digital assets in the U.S. As investor demand for crypto-related products continues to rise, the SEC’s actions are closely monitored for signals on the future of crypto ETFs and the broader acceptance of digital assets in mainstream finance. The outcome of the Franklin XRP ETF application could set a precedent for similar proposals and influence regulatory guidance in the sector.