Summary
-
SEC Defers Decisions on Altcoin ETFs: The U.S. Securities and Exchange Commission (SEC) has postponed its decision-making process for spot exchange-traded funds (ETFs) intended to provide investors with exposure to Dogecoin (DOGE) and Ripple-affiliated XRP.
-
Extended Scrutiny for Specific Proposals: The review period for the 21Shares Core XRP Trust, Grayscale XRP Trust, and Grayscale Dogecoin Trust has been extended beyond the original May 21-22 deadlines to allow further examination of compliance with Exchange Act Section 6(b)(5) concerning investor protection and fraud prevention.
-
Regulatory Delays Viewed as Standard: Industry analysts, like Bloomberg Intelligence’s James Seyffart, consider such SEC deferrals on crypto ETFs as normal procedure, with final decisions more likely expected in late Q3 or early Q4, aligning with the full allotted review times rather than indicating any specific regulatory bias.
The U.S. Securities and Exchange Commission (SEC) has deferred its decision concerning the approval for trading of spot exchange-traded funds (ETFs) designed to offer investors exposure to altcoins Dogecoin (DOGE) and the Ripple-affiliated XRP.
Extended Review for Specific Altcoin ETF Filings
In filings dated Tuesday, the principal U.S. financial markets regulator announced an extension of the review timeline for several specific proposed products: the 21Shares Core XRP Trust, the Grayscale XRP Trust, and the Grayscale Dogecoin Trust.
This postponement pushes back the original decision deadlines of May 21-22, allowing the SEC additional time to scrutinize whether these proposals meet the criteria stipulated under Section 6(b)(5) of the Exchange Act, which pertains to the prevention of fraudulent and manipulative acts and practices and the protection of investors.
Proposed ETF Structures and Underlying Assets
The proposed rule changes, submitted earlier this year by the Cboe and NYSE—the respective listing exchanges for the 21Shares and Grayscale funds—detail the operational frameworks.
Specifically, the 21Shares Core XRP Trust intends to benchmark against the CME CF XRP-Dollar Reference Rate, with Coinbase Custody designated for asset storage.
For market context, Dogecoin, recognized as the pioneering and largest memecoin by market capitalization, was valued at approximately $33.7 billion as of May 21, according to CoinGecko data.
XRP, the native digital asset of the XRP Ledger network, possessed a market capitalization of roughly $138 billion on the same date, per CoinGecko.
The SEC emphasized that the “institution of proceedings does not indicate that the Commission has reached any conclusions concerning any of the issues involved.
Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
Regulatory Delays Considered Normative in ETF Approval Process
The postponement of decisions on numerous crypto ETF applications by the SEC has been a recurring theme recently as the agency evaluates a multitude of proposals.
The article references an observation of a more accommodating stance towards digital assets during the Trump administration.
And notes recent dismissals of enforcement cases and meetings between the SEC’s crypto task force and industry representatives under the current administration.
As potential indicators of evolving regulatory perspectives, such delays remain common.
According to James Seyffart, an ETF analyst at Bloomberg Intelligence, such deferrals by the SEC concerning spot crypto ETFs are standard procedure.
In a statement on May 20 via X (formerly Twitter), Seyffart suggested that any early approvals for these assets would likely not occur before late June or early July at the earliest, with a more probable timeline extending into early Q4.
He further noted the SEC’s consistent practice of utilizing the entire allotted timeframe for responses, irrespective of the presiding leadership.
Seyffart highlighted that most of these filings have final deadlines in October, framing early decisions as deviations from the norm, regardless of any perceived “crypto-friendly” disposition of the current commission, thereby dismissing notions of a “conspiracy.”
Also Read: Ripple’s XRP Whales Bet on $5 XRP in May as Bulls Eye New Monthly Peak
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets