XRP News Today: SEC Halts Bitwise ETF Approval Citing Full Commission Review

The U.S. Securities and Exchange Commission’s abrupt reversal of its approval for Bitwise Asset Management’s crypto ETF conversion has reignited debates over regulatory consistency in the cryptocurrency sector. On July 23, 2025, the SEC’s Division of Trading and Markets initially greenlit the Bitwise 10 Crypto Index Fund’s transition to an exchange-traded fund, a move that would have marked the first U.S. multi-asset spot crypto ETF. However, the decision was swiftly suspended by Assistant Secretary Sherry R. Haywood, citing the need for a full commission review under Rule 431, a procedural tool typically reserved for administrative corrections [1][2]. The unexpected pause left market participants and industry observers scrambling to interpret the agency’s shifting stance.

Bitwise, which had described the initial approval as “thrilled,” now faces a regulatory crossroads. The firm’s spokesperson emphasized it is “actively evaluating” the implications of the reversal while highlighting its ongoing engagement with the SEC under the Trump administration. The Bitwise 10 fund, which tracks a diversified basket of cryptocurrencies including bitcoin, ether, XRP, solana, and polkadot, was positioned as a gateway for investors seeking broad exposure beyond bitcoin. Its delayed launch underscores the hurdles for innovators navigating an evolving regulatory landscape [3][4].

This is not the first time the SEC has rescinded a crypto ETF approval. Earlier in 2025, Grayscale’s Digital Large Cap Fund faced a similar fate after initial clearance. Both cases highlight the agency’s internal tensions: a desire to foster innovation while maintaining caution over market manipulation and investor protection. Critics argue the SEC’s inconsistent enforcement—a “flip-flop” in industry parlance—has created uncertainty, deterring institutional players and prolonging product timelines. Supporters, however, stress the need for safeguards, particularly as the agency reviews a growing pipeline of crypto-linked ETFs, including those tied to smaller tokens like Dogecoin [5][6].

Market reactions to the Bitwise reversal were mixed. While the initial approval briefly spurred gains in crypto prices, the subsequent suspension led to volatility, with investors reacting to conflicting signals. Analysts note the incident reflects broader challenges in defining oversight boundaries for crypto assets, a sector increasingly seeking institutional legitimacy. The SEC’s indecision also raises questions about its capacity to establish clear, standardized criteria for listing crypto ETFs, a gap that could delay future approvals [7][8].

Bitwise’s next steps remain unclear. The firm has not yet announced whether it will contest the SEC’s decision but has hinted at seeking further clarification. If the company proceeds, its case could set a precedent for future applications, given the SEC’s handling of this reversal. The agency’s rationale for the pause—left unexplained in official communications—will likely influence how regulators approach similar products. For now, the episode underscores the fragility of regulatory momentum in the crypto space, where political shifts and internal agency dynamics continue to shape outcomes [9][10].

Source:

[1] [SEC Pauses Bitwise Crypto ETF Just After Approval] (https://www.cryptoninjas.net/news/sec-pauses-bitwise-crypto-etf-just-after-approval-whats-behind-the-shock-decision/)

[2] [SEC's Sudden Reversal Pauses Bitwise ETF Conversion] (https://coincodex.com/article/70554/sec-bitwise-etf-conversion-halted/)

[3] [SEC approved, then paused Bitwise crypto ETF conversion] (https://invezz.com/news/2025/07/23/sec-approved-then-paused-bitwise-crypto-etf-conversion/)

[4] [SEC Flip-Flops Again on Bitwise Crypto ETF Approval] (https://www.bitrue.com/blog/sec-bitwise-etf-approval)

[5] [XRP News Today: SEC suspends Bitwise 10-Crypto ETF] (https://www.ainvest.com/news/xrp-news-today-sec-suspends-bitwise-10-crypto-etf-time-regulatory-review-2507/)

[6] ['Bizarre': ETF with XRP Exposure Hits Major SEC Roadblock] (https://www.tradingview.com/news/u_today:35a188eb5094b:0-bizarre-etf-with-xrp-exposure-hits-major-sec-roadblock/)

[7] [SEC Pauses Crypto ETFs, Japan Manufacturer Adopts ...] (https://www.mitrade.com/au/insights/news/live-news/article-3-979229-20250723)

[8] [SEC Approves, Then Halts Bitwise Crypto Index Fund ETF ...] (https://defi-planet.com/2025/07/sec-approves-then-halts-bitwise-crypto-index-fund-etf-conversion/)

[9] [Bitwise Crypto ETF Faces Sudden Pause After Surprise ...] (https://www.bitcoininsider.org/article/280069/bitwise-crypto-etf-faces-sudden-pause-after-surprise-approval-sec)

[10] [Bitwise Gets XRP ETF Approval from SEC, But Trading ...] (https://coinpedia.org/news/bitwise-gets-xrp-etf-approval-from-sec-but-trading-halted/)