XRP News Today: SEC Extends Review of Franklin Templeton’s XRP Solana ETFs by 35 Days

The U.S. Securities and Exchange Commission (SEC) has extended the evaluation period for Franklin Templeton’s proposed exchange-traded funds (ETFs) based on XRP and Solana by an additional 35 days. This delay pushes the decision deadline to late July, affecting the potential listing of these ETFs on the Chicago Board Options BZX Exchange. Initially submitted in March, the applications were first deferred in April, and the SEC has now opened the applications for public commentary, allowing for a more thorough examination of the proposed ETFs and the exchange’s operations.

The SEC’s decision to extend the evaluation period is part of the traditional procedural process. The public commentary period, which began on June 17, will gather initial comments within 21 days after being published in the Federal Register. Responses to these comments can be submitted within 14 days following this initial period. This process ensures that a wide range of opinions are considered in the decision-making process. The SEC is specifically seeking public input to assess whether listing and trading shares of the Trust holding XRP is designed to prevent fraud and manipulation or reveals unanticipated concerns unexamined by the Commission.

The proposed XRP ETF aims to contain only XRP and cash equivalents, with its valuation method employing the CME CF XRP-Dollar Reference Rate. For the Solana (SOL) ETF, a proposal has surfaced to stake SOL assets, suggesting that declining staking rewards could mirror the impact of losing stock dividends. The SEC’s evaluation proceeds under the 6(b)(5) section of the Securities Exchange Act of 1934, emphasizing fraud prevention and investor protection. The SEC’s announcement reinforces that the initiation of an investigation does not imply any reached conclusion on the matters involved.

While the approval status of the ETF applications remains unclear, there is positive anticipation within the market. Related markets are closely observing these developments. Notably, an XRP-based ETF began trading on the TSX exchange in Canada on June 18, garnering international attention and sparking discussions about similar products in the U.S. The outcome of Franklin Templeton’s applications, coinciding with a period when regulatory frameworks are being established, could influence other companies’ motivations for similar applications. Additionally, the SEC’s approaches and public opinions will likely play crucial roles in shaping the final decision.

There remains uncertainty regarding the regulatory approval of the new ETF products. Decisions by the SEC, along with public comments, hold the potential to shape the future of cryptocurrency-based financial products in the United States. The approach to regulating investment funds and protecting investors is critically important for the widespread trading of crypto assets in financial markets. The SEC’s final decision could mark a new era for both investors and the financial sector. This process, open to public commentary, can serve as an example of transparency and participation within the industry. Investors, however, are encouraged to carefully consider risks and opportunities when ETF applications are approved or denied.