Regulators Prolong Crypto ETF Uncertainty, Investors Hold Their Breath

The U.S. Securities and Exchange Commission (SEC) has extended the decision timeline for BlackRock and Franklin Templeton’s applications to include staking for Ethereum-based exchange-traded funds (ETFs), as well as for Franklin Templeton’s proposals to list spot XRP and Solana (SOL) ETFs. The agency cited the need for additional time to review the proposals, which have generated significant public interest and debate. This delay is part of a broader pattern as the SEC continues to refine its regulatory approach to crypto ETFs.

In a recent filing, the SEC disclosed its intention to delay its decision on whether to allow staking for Ethereum ETFs managed by BlackRock, Fidelity, and Franklin Templeton. The proposed staking mechanism would allow investors to earn returns from participating in Ethereum’s proof-of-stake consensus mechanism. This move was spurred by a May 2025 SEC Division of Corporation Finance statement indicating that certain staking activities do not constitute the offering of securities. However, the SEC has yet to finalize its stance, extending the review period and contributing to ongoing uncertainty in the market.

Franklin Templeton, one of the key players in the crypto ETF space, has faced repeated delays in its applications for XRP and Solana ETFs. The firm first submitted its proposals in March 2025, and the SEC has since postponed its decision multiple times. This trend mirrors delays seen in other altcoin ETF applications, including those for Polkadot (DOT) and Hedera (HBAR), which have been pushed back to November 2025. The SEC’s cautious approach reflects its broader effort to establish consistent and comprehensive rules for spot crypto ETFs, particularly for assets beyond Bitcoin and Ethereum.

Market participants, including crypto industry experts and institutional players, have expressed growing frustration over the pace of regulatory decisions. Over 90 crypto ETF applications are currently pending SEC approval, according to a chart by Bloomberg Intelligence analyst James Seyffart. This backlog has created expectations that a spot ETF will be filed for nearly every major cryptocurrency within the next year, despite regulatory hurdles. Some market observers suggest that the SEC’s delay may be driven by internal debates over the classification of digital assets and the appropriate regulatory framework for staking and trading activities.

The potential approval of a Dogecoin ETF has also garnered attention, with the SEC pushing its decision to November 12, 2025. The proposed fund, filed by NYSE Arca on behalf of Bitwise, has sparked discussions over the risks and opportunities associated with meme-based cryptocurrencies. Skeptics argue that allowing Dogecoin into the ETF framework could expose retail investors to heightened volatility, while proponents maintain that the asset’s growing liquidity and large user base justify its inclusion. The outcome of this application could set a precedent for other niche or meme-based tokens seeking ETF status.

The prolonged review process has not dampened investor interest in many of the proposed crypto ETFs. Tokens like Polkadot and Solana have shown strong performance, with trading volumes and price gains reflecting growing demand. However, the uncertainty surrounding regulatory approvals continues to create a cautious environment for both institutional and retail investors. As the SEC works to finalize its guidelines, market participants remain closely watching for signals that could accelerate or stall the broader adoption of crypto ETFs in the U.S. market.