XRP News Today: SEC suspends Bitwise 10-Crypto ETF for second time amid regulatory review

The U.S. Securities and Exchange Commission (SEC) has once again reversed course on a major cryptocurrency-related decision, suspending its recent approval of Bitwise’s 10-Crypto Index Exchange-Traded Fund (ETF). The fund, which includes exposure to Bitcoin, Ethereum, XRP, and seven other altcoins, was initially cleared for listing on July 22, 2025, through the SEC’s delegated approval process. However, the agency announced late yesterday that it will re-examine the decision under 17 CFR 201.431, a rule that allows the Commission to review decisions made by its own sub-bureaus. This marks the second time the SEC has rescinded a crypto ETF approval, following a similar reversal of Grayscale’s crypto fund conversion in July.

The Bitwise 10-Crypto Index Fund is structured to track a basket of 10 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), Cardano (ADA), Sui (SUI), Chainlink (LINK), Litecoin (LTC), Polkadot (DOT), and Avalanche (AVAX). The SEC’s initial approval had been seen as a significant milestone for the crypto asset class, signaling potential mainstream adoption of spot crypto ETFs. However, the sudden suspension underscores the agency’s continued scrutiny of regulatory boundaries in the rapidly evolving market. The decision to defer the approval under Rule 431 means the fund’s listing on the NYSE Arca remains in limbo until the SEC provides further guidance.

This development highlights the SEC’s internal tension between fostering innovation and enforcing compliance. While the agency’s Bureau of Trading and Markets had delegated authority to approve the listing, the Commission’s oversight body has now stepped in to reassess the decision. The SEC’s move aligns with broader regulatory uncertainty surrounding crypto ETFs, particularly after its previous reversal of Grayscale’s fund conversion. Analysts note that the agency’s actions reflect an ongoing effort to balance investor protection with market growth, though the lack of a clear regulatory framework for crypto assets complicates this balance.

The suspension has raised concerns among market participants about the stability of the approval process for crypto products. The inclusion of nine altcoins in the Bitwise fund—which collectively represent a mix of established and emerging blockchain projects—further amplifies scrutiny over whether such assets meet the SEC’s criteria for securities. While the agency did not specify the reasons for the review, the decision suggests heightened caution regarding potential legal challenges or market risks associated with crypto-based funds. Investors and issuers alike are now left waiting for the SEC to clarify its stance, with the agency indicating it will notify the NYSE Arca and other stakeholders of any future developments.

The episode underscores the challenges facing the crypto industry as it seeks regulatory clarity. For now, the SEC’s actions remain unpredictable, with each decision creating both opportunities and uncertainties for market participants. The agency’s focus on Rule 431 appears aimed at reinforcing its oversight role, but the practical impact on innovation in the crypto space remains to be seen. As the review process unfolds, all eyes will be on the SEC’s final determination, which could set a precedent for future crypto ETF applications and broader market participation.