XRP News Today: SEC Delays 21Shares XRP ETF Approval Amidst Regulatory Caution

The Securities and Exchange Commission (SEC) has delayed the approval of 21Shares’ application for an XRP exchange-traded fund (ETF). This decision comes despite the recent optimism surrounding regulatory developments in the cryptocurrency space. The SEC also postponed at least three other altcoin ETF applications, adding to the list of delays.

Despite these setbacks, ETF analysts remain optimistic that the SEC will eventually approve these products. Government institutions, including the SEC, operate on a slower timeline and often delay decisions whenever feasible. This approach allows for thorough consideration of all aspects of the application.

The XRP ETF has garnered significant community interest, especially after the world’s first such product began trading in Brazil last month. Additionally, the launch of XRP futures trading on the CME has further fueled enthusiasm. However, this anticipation has also led to community impatience, with fake approval rumors circulating widely.

Despite the positive sentiment, the SEC has continued to delay ETF applications. Today, the Commission postponed 21Shares’ XRP ETF application, pushing the decision back by at least three weeks. In addition to 21Shares’ XRP offering, the SEC also delayed a Dogecoin product from Grayscale. Yesterday, the Commission announced similar delays for five different Solana ETF applications, adding to the disappointment.

James Seyffart, a prominent ETF analyst, addressed these concerns, stating that delays on spot crypto ETFs are expected. He claimed that if early approvals from the SEC on any of these assets are to be seen, it would not be until late June or early July at the earliest, and more likely in early Q4. Seyffart also noted that the Commission usually takes as much time as possible to thoroughly consider ETF applications. If the SEC isn’t forced to decide on an XRP ETF until October, it will take all the time it can get.

In addition to the bureaucratic minutiae of a transformative decision like this, the SEC also has to handle a wide range of other duties. After postponing the XRP and Dogecoin ETFs, the SEC issued similar delays for two more altcoin-related products. Despite these setbacks, the odds of eventual approval are still pretty high.

Previously, most analysts emphasized that Litecoin would be the first altcoin ETF to get approval after Ethereum. This is due to the asset’s clear status as a commodity. Yet, the commission also postponed different Litecoin ETF applications earlier. In any event, it looks like the XRP ETF and all other novel altcoin filings should prepare for a long wait. The SEC is giving some incredibly bullish signals about its views on crypto ETF regulation.

Nonetheless, government institutions operate on a different time scale from the rapid-firing crypto market. The Commission won’t rush, no matter how good the market is. The ETF market is booming, and the SEC is currently under more pro-crypto leadership. However, the Commission’s approach to ETF approvals remains cautious and deliberate, prioritizing thorough consideration over speed.