Regulatory Clock Ticks as SEC Delays Multiple Crypto ETF Rulings

The U.S. Securities and Exchange Commission (SEC) has extended its deadlines for reviewing several key proposals related to cryptocurrency exchange-traded funds (ETFs). In recent filings, the agency pushed back its decision on BlackRock’s iShares Ethereum Trust (ETHA) to include staking features to October 30, a 45-day extension from the initial deadline of September 15. The delay follows a similar move for the 21Shares Ethereum ETF, where the SEC set October 23 as its final decision date. Grayscale’s Ethereum ETF staking proposal now faces a review deadline of October 29.

Alongside these Ethereum-related updates, the SEC also postponed its decision on the listing of the Franklin Templeton Solana ETF and Franklin Templeton XRP ETF to November 14. This comes amid a broader pattern of delayed decisions on altcoin ETF proposals in recent weeks. For example, the regulator extended its evaluation of Grayscale’s Hedera Trust to November 12, and it has also delayed rulings on various XRP, Dogecoin, and Litecoin ETFs from firms including Grayscale, CoinShares, and 21Shares. The SEC has previously extended deadlines for similar Solana and Dogecoin ETF applications.

The delays appear to align with a broader regulatory strategy that includes reviewing rule changes proposed by exchanges like Cboe and the New York Stock Exchange (NYSE). These exchanges have sought to streamline the approval process for future crypto ETFs by requesting amendments that would allow certain products to be automatically listed without case-by-case evaluations. Under current rules, the review process for proposed changes can last up to 240 days, prompting calls for reform from industry participants and analysts.

Industry observers have noted the significance of these delays in the context of the broader crypto market. The potential inclusion of staking features in Ethereum ETFs has been a major driver of market sentiment, with Ethereum’s price rising in recent months. While the SEC has previously stated that staking is not a security, the agency continues to weigh its regulatory implications. The pending decisions on Ethereum staking are being closely watched, with some analysts suggesting that a coordinated approval of multiple ETFs could occur in late October.

The extended timelines highlight the SEC’s cautious approach to regulating the fast-evolving crypto market. While the agency has acknowledged the potential for innovation in the space, it has also emphasized the need to protect investors and ensure market integrity. With over 90 crypto ETF applications under review as of September, the SEC’s decisions in the coming weeks are expected to have a significant impact on the industry’s regulatory landscape and investor confidence.