SEC Delays Decisions on Six Altcoin ETFs Amid Market Chaos

The Securities and Exchange Commission (SEC) has delayed decisions on several exchange-traded fund (ETF) applications, specifically those based on Solana, XRP, Litecoin, and Dogecoin. This move comes amidst recent criticism directed at the Commission for its pro-crypto actions, potentially providing it with more time to deliberate on these matters.

The SEC acknowledged fresh ETF applications shortly before delaying the aforementioned group. Many of these new filings were submitted by the same issuers or applied to the same cryptoassets as the first group. The Commission has been undergoing significant changes recently, which has prompted a wave of altcoin ETF applications from several potential issuers.

In total, the SEC delayed approval for six different ETFs based on Solana, XRP, Litecoin, and Dogecoin. The acknowledged Solana ETF applications previously had a deadline set for today, and this extension gives the Commission a chance to consider the matter more fully. By contrast, the XRP ETF did not have an SEC deadline until several months from now. The Commission delayed applications from Canary and Grayscale but not Bitwise; this final proposal is the most recent of the three.

Bizarrely, the Commission acknowledged another application on its website today, an XRP ETF prospectus filed by Franklin Templeton. In addition to Franklin Templeton’s XRP ETF, it also recognized a Dogecoin ETF application and another based on Hedera.

One possible explanation for the SEC’s choice to delay ETF proposals is that approving fresh altcoin ETFs would significantly shake up the market, and it’s already in a moment of chaos. The Commission is short a member until its new Chair gets confirmed by the Senate, and it may already be delaying other actions until this happens.

If the SEC approves these altcoin ETFs immediately, it might invite further fractures of this nature. The Commission hasn’t explicitly stated any of its intentions on this matter. The SEC took its time to consider ETF applications under Gary Gensler thoroughly, and the trend may simply be continuing.

One thing does seem clear, however. With this many postponements in one day, any new altcoin ETF approvals might take several more months to come.