The U.S. Securities and Exchange Commission (SEC) has announced further postponements in its decision-making process regarding the approval of certain cryptocurrency-focused exchange-traded funds (ETFs). The SEC has extended its deadlines to assess the addition of staking to BlackRock’s iShares spot Ethereum ETF and Franklin Templeton’s proposals for Solana and XRP funds.
Initially scheduled for earlier consideration, the SEC has delayed its decision on the Nasdaq exchange’s rule change proposal for the iShares Ethereum Trust (ETHA) to October 30, marking a 45-day extension. Similarly, decision deadlines for the Cboe rule change filings relating to the Franklin Templeton Solana and XRP ETFs have been moved to November 14, representing a 60-day deferment.
These delays are part of a broader pattern seen recently, characterized by the SEC’s cautious approach towards altcoin fund proposals. Just this week, the regulator postponed a decision on Nasdaq’s application to list the Grayscale Hedera Trust until November 12. In a related move last month, the SEC delayed matters regarding the addition of staking in the 21Shares Core Ethereum ETF and took more time to evaluate Donald Trump’s media company’s application for a Bitcoin and Ethereum ETF.
Moreover, the SEC announced delays for several proposed spot XRP funds from Grayscale and other firms, as well as for projects related to Dogecoin and Litecoin. These postponements reflect the SEC’s consistent hesitancy in swiftly approving cryptocurrency ETFs, particularly those involving altcoins and staking elements.
According to Bloomberg Senior ETF Analyst Eric Balchunas, this strategy aligns with the SEC’s current trajectory. The regulator may be timing its decisions to align with anticipated approvals for earlier proposals submitted by exchanges such as Cboe and NYSE, which could introduce regulatory changes to expedite the listing of these crypto ETFs. These modifications would permit ETFs to be listed automatically, potentially easing the lengthy approval processes.
As the regulatory environment continues to evolve, these actions illustrate the SEC’s cautious stance toward the burgeoning crypto sector. Investors and stakeholders alike await the outcomes of these decisions, which could impact the future landscape of cryptocurrency investments.