XRP ETF Decision Delayed by SEC Amid Franklin Templeton Bid

The XRP ETF application submitted by Franklin Templeton is facing another delay as the United States Securities and Exchange Commission (SEC) postpones its decision on the matter. This marks yet another move by the regulatory body to carefully assess the growing interest in cryptocurrency-based investment vehicles.

In a recent development, the SEC has extended its decision window for listing the proposed XRP exchange-traded fund (ETF) on the Chicago Board Options Exchange (CBOE). Rather than reaching a conclusion, the Commission is now actively seeking public input on whether the fund should be approved or rejected. This public comment period serves as a vital step in the regulatory evaluation process, offering stakeholders and concerned parties a window to express their views.

The call for commentary follows a previous delay marked for June 17. According to officials, the newly extended deadline for comments and counterarguments will stretch into late July. This effectively pushes any potential decision well beyond the initial target, offering the SEC more time to evaluate the implications of allowing a spot-based XRP ETF to trade on public markets.

Eleanor Terrett, a financial journalist, confirmed this procedural shift via social media, noting that the SEC is aiming for a thorough examination via external input. By opening this period, the Commission is not indicating a definitive stance—either in favor or against. Instead, it emphasizes the importance of transparency and public involvement in shaping financial policy related to emerging digital assets like XRP.

Franklin Templeton, a global investment firm with a significant presence in traditional financial markets, is currently the largest entity to file for a spot XRP ETF. The move is being seen as a landmark attempt to introduce wider institutional adoption for Ripple’s digital currency. If approved, this ETF could pave the way for similar offerings and lend credibility to XRP as a long-term investment asset.

However, delays like this are not uncommon. The SEC holds the authority to extend decision timelines as part of its review framework, especially when dealing with novel or complex financial products. Given that cryptocurrency ETFs remain highly scrutinized due to their nascent legal infrastructure and market volatility, it’s standard practice for the agency to request further information and feedback before granting approval to such proposals.

It’s important to interpret this delay not as a negative indicator but rather as part of a methodical process. The SEC often extends deliberation periods in order to gather robust information from all market participants, legal experts, and the general public. Doing so helps minimize future regulatory issues and ensures that any approved ETF aligns with the broader goal of market stability and investor protection.

With the comment and rebuttal deadline now approaching in late July, industry observers and Ripple supporters alike are watching closely. The final outcome could have strong implications not only for XRP but also for the broader landscape of crypto-based ETFs. An approval would underscore the growing institutional confidence in Ripple’s ecosystem and offer investors a new way to gain exposure to the asset through regulated markets.

Related: Expert Advice: Sell XRP If You’re Confused

Until then, all eyes remain on the SEC and how it interprets the various inputs it receives over the coming weeks. The eventual decision could mark a pivotal moment for digital asset regulation and the evolution of crypto offerings in traditional finance.