Ethereum News Today: SEC Delays Crypto ETF Approvals for Bitcoin Ethereum XRP Litecoin Dogecoin

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on nine applications for crypto-based exchange-traded funds (ETFs), extending the review periods for products tied to Bitcoin, Ethereum, XRP, Litecoin, and Dogecoin. The move, announced on August 18, comes as the agency reportedly works on a broader framework to streamline the approval process for digital asset ETFs [1].

Among the affected applications are Truth’s spot Bitcoin and Ethereum ETF, CoinShares’ spot Litecoin ETF, and multiple XRP ETF proposals from 21Shares, CoinShares, Bitwise, Canary, and Grayscale. Additionally, the SEC postponed its decision on 21Shares’ staking proposal for its spot Ethereum ETF and Grayscale’s spot Dogecoin ETF application [1]. Most of the delayed applications now have a final deadline of October, with the exception of Truth’s filing [1].

Analysts have interpreted the delays as part of the SEC’s broader strategy to establish consistent approval criteria before moving forward with individual applications. According to Bloomberg ETF analysts, this approach may allow the SEC to delay the ETF status of certain crypto products until a structured framework is in place [1]. Seyffart, a crypto ETF analyst, suggested that the agency is likely “stalling these things from becoming ETFs before they develop a digital assets ETF framework” [1]. He noted that the framework could define a generic listing standard for digital assets in ETFs, potentially replacing the current case-by-case review process [1].

Under the proposed system, ETF sponsors could bypass the traditional Form 19b-4 process if the underlying tokens meet predefined criteria such as market capitalization, on-exchange trading volume, and daily liquidity [1]. Sponsors would then submit registration statements on Form S-1 and undergo standard 75-day review periods before listing. Seyffart described the generic standard as “very good news for the crypto ETF space,” as it would provide “clear rules of the road” [1]. Balchunas, another analyst, called the concept “what everyone wants, what makes sense, and what we think will happen” [1].

The SEC has reportedly been collaborating with U.S. exchanges since July on the development of generic listing standards for token-based ETFs, a move that could streamline the approval process and reduce the need for individual rule-change requests [1]. If finalized, the new framework could pave the way for the first altcoin-related ETF approvals as early as October [1].

Source: [1] [title1] (https://cryptoslate.com/sec-delays-decisions-on-several-crypto-etfs-amid-work-on-streamlined-approval-process/)