SEC delays decision on Franklin Templeton’s XRP ETF

The US Securities and Exchange Commission has opted to delay its decision on whether to greenlight Franklin Templeton’s proposed spot XRP exchange-traded fund. The SEC released a notice on April 29, 2025, indicating that the regulatory body has extended its review of the XRP ETF to June 17, 2025. This new timeframe represents the deadline by which a final determination will be made regarding the approval or rejection of the spot XRP ETF.

The postponement by the SEC provides additional time for a comprehensive evaluation of Franklin Templeton’s application, which was initially submitted on March 19, 2025. The proposal targets the listing and trading of shares of the Franklin XRP Fund under NYSE Arca Rule 8.201-E. The SEC’s filing sheds light on the agency’s necessity for an extended review period, presently set at 45 days, which could potentially be further lengthened up to 240 days from the date of initial publication in the Federal Register. This scenario might push the SEC’s final decision until the middle of October 2025.

The SEC maintains that the delay is a lawful and procedural step that affords the regulator sufficient time to meticulously examine the proposed rule change and confirm its compliance with self-regulatory organization stipulations. While the adjustment may seem novel, it reflects a pattern of deliberate consideration that the SEC has demonstrated regarding cryptocurrency-related financial offerings. The SEC has, in the past, taken considerable time to approve spot Bitcoin ETFs and Ether spot ETFs.

Despite these delays, the demand from investors for cryptocurrency ETFs is on the rise. Various issuers have submitted more than 70 proposals in recent months, aimed at securing approval to list exchange-traded funds linked to prominent alternative cryptocurrencies. Noteworthy mentions among these highly anticipated listings include XRP, Solana, Litecoin, Hedera, and Dogecoin.

Echoing sentiments on the latest development, Bloomberg ETF analyst James Seyffart contemplates that more postponements from the SEC can be expected, both imminently and in the near future regarding Solana and Hedera/HBAR ETF filings. Seyffart has underlined that the majority of ETF applications are likely to observe final deadlines in October 2025 or even beyond. The analyst anticipates that this expectation for further delays aligns well with the prevailing circumstances surrounding SEC decisions on various cryptocurrency ETF proposals.

Overall, the regulatory ecosystem, as indicated by the SEC’s recent postponement on the XRP ETF decision, underscores a meticulous approach to the evaluation and approval of cryptocurrency financial products. Investors eagerly await the final verdict from the SEC on Franklin Templeton’s spot XRP ETF and closely monitor the regulatory landscape for cues concerning potential future developments in cryptocurrency ETF approval processes.