SEC Delays Cryptocurrency ETF Decisions Amid Leadership Uncertainty

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on several cryptocurrency exchange-traded fund (ETF) applications, including those for XRP, Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). The SEC filed the proposals on March 11, 2025, stating that they needed more time to evaluate proposed changes before making a final decision. These delayed applications include Grayscale’s XRP ETF and Cboe BZX Exchange’s Solana ETF, which has now been pushed back to May 2025. Analysts have noted that these delays are part of the SEC’s standard process, especially given the current leadership flux at the agency.

The SEC is currently experiencing a period of uncertainty due to the lack of confirmed leadership. Paul Atkins, who was set to replace former chairman Gary Gensler, resigned in January without being confirmed by Congress. This leadership vacuum has contributed to the SEC’s cautious approach towards new cryptocurrency ETFs. Acting SEC Chairman Mark Uyeda has proposed changes to regulatory policies, including the rollback of rules to expand regulatory oversight of alternative trading systems that include cryptocurrency firms. The SEC’s position on digital assets remains unclear, leading some analysts to suggest that the delays are part of a strategy to assess their approach.

Despite the postponement of several applications, the SEC acknowledged new ETF filings on the same day. Notable among these was Franklin Templeton’s XRP ETF application, which appeared on the SEC’s official website. Additionally, the Commission recognized a Dogecoin ETF proposal and an application for a Hedera-based ETF. The SEC’s handling of these ETF applications has raised concerns about its decision-making process. Some analysts suggest that the Commission may be stalling as it navigates increasing political and regulatory challenges.

The crypto market has been eagerly awaiting the approval of these ETF applications, as this could increase institutional altcoin investments. The SEC has been taking a cautious approach, while some experts believe the chances of approval are strong. ETF analyst James Seyffart noted that the delays do not lower the chances of approval, which remain fairly strong. He also emphasized that the final deadlines for these decisions are set for October. For now, the SEC has until later in the year to make a final decision on these ETFs. Until then, the market remains in a wait-and-see mode as regulatory developments unfold.