Bitcoin News Today: SEC Delays Crypto ETF Rulings to Craft New Regulatory Framework

The U.S. Securities and Exchange Commission (SEC) has once again delayed decisions on multiple cryptocurrency ETF applications, pushing back the expected rulings on Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) ETFs to early and late October 2025. This move adds to a long-standing pattern of regulatory hesitation and has extended investor uncertainty surrounding the approval of spot-based crypto ETFs. Analysts widely view these approvals as a potential catalyst for mainstream adoption of digital assets and a gateway for institutional capital to flow into the crypto market. The prolonged uncertainty has already led to increased volatility in BTC and ETH prices, as market participants await clearer signals from the SEC [1].

Among the delayed applications is the Truth Social spot Bitcoin ETF and Ethereum ETF, both scheduled for review on October 8. Additionally, several altcoin-based ETFs, including CoinShares' spot Litecoin ETF and multiple XRP ETF proposals from 21Shares and others, have also been postponed. The SEC has cited the need for additional time to assess the applications, citing concerns over investor protection, market manipulation, and the complexity of the crypto market. This approach reflects a broader effort by the SEC to establish a unified framework for crypto ETFs, potentially replacing the current case-by-case review process [2].

The SEC’s ongoing work to develop a streamlined approval process for digital assets has been highlighted by Bloomberg ETF analysts. They suggest that the agency is likely using these delays to finalize a comprehensive digital asset framework, which would establish generic listing standards for crypto ETFs. Under this proposed system, ETF sponsors could bypass the traditional Form 19b-4 process if their underlying tokens meet specific criteria such as market capitalization, trading volume, and liquidity. This approach is seen as a positive development by industry experts, who believe it could provide much-needed clarity and reduce regulatory ambiguity [2].

Market reactions to the latest round of delays have been mixed. While Bitcoin and Ethereum have remained relatively stable, altcoins like XRP and LTC have seen increased investor skepticism. The delay in XRP ETF decisions comes at a pivotal moment for the asset, which recently secured a partial legal victory against the SEC. Many in the crypto community see ETF approval as a potential turning point for XRP’s institutional adoption. Litecoin, while less prominent than Bitcoin or Ethereum, has also gained attention through its inclusion in ETF discussions, signaling broader recognition of its role as a veteran cryptocurrency [1].

Analysts remain divided on the SEC’s strategy, with some viewing the delays as part of a cautious regulatory approach and others interpreting them as an unwillingness to fully embrace crypto ETFs. Despite the uncertainty, there is growing consensus that the SEC is likely to establish a framework in October that could pave the way for the first wave of altcoin ETF approvals. The outcome of these regulatory developments will likely have a significant impact on investor sentiment and market dynamics, particularly if the SEC moves forward with approvals for Bitcoin or Ethereum ETFs [1].

The broader crypto ETF market has seen rapid adoption and innovation, with products like the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA) emerging as key players. These funds have attracted substantial net inflows and have grown into category leaders by assets and liquidity. Retail and institutional investors alike have shown increased interest in crypto ETFs, driven by the regulatory progress and the growing legitimacy of digital assets in financial portfolios. The rising demand has also spurred product innovation, with new ETFs focusing on Bitcoin-holding companies and convertible bonds issued by crypto-related firms [3].

Source:

[1] SEC Kicks the Can Down the Road on Bitcoin ETF Decision (https://thetradable.com/crypto/sec-kicks-the-can-down-the-road-on-bitcoin-etf-decision-ig--m)

[2] SEC delays decisions on several crypto ETFs amid work ... (https://cryptoslate.com/sec-delays-decisions-on-several-crypto-etfs-amid-work-on-streamlined-approval-process/)

[3] Crypto ETFs: Regulation, Returns & Rise of Innovation Pt. II (https://www.etftrends.com/crypto-etfs-regulation-returns-rise-innovation-pt-ii/)