XRP ETF Faces Regulatory Delays Amid SEC Uncertainty

The growing anticipation around the approval of an XRP ETF has taken a hit, as recent developments indicate that regulatory hurdles could delay progress for the foreseeable future. Despite heightened investor interest, the market is now dealing with increasing uncertainty tied to U.S. regulatory frameworks.

According to a recent report, the U.S. Securities and Exchange Commission (SEC) is not in a rush to green-light a wave of new spot cryptocurrency exchange-traded funds. This cautious stance also includes any potential ETF tied to XRP, the token associated with Ripple. As investors seek more accessible exposure to digital assets, particularly XRP, hopes for ETF approval have dwindled for the moment.

Polymarket bettor data reflects this shift in sentiment. Odds of a spot XRP ETF getting the SEC’s green light by July 31 have plummeted to just 7%, a dramatic drop from 32% at the start of the month—and a far cry from the 50% likelihood projected back in April. The decreasing confidence underscores the skepticism surrounding the SEC’s current pace on crypto ETF advancements.

The regulatory body is taking a methodical approach, which starts with a 12-page document that outlines initial disclosure requirements for prospective ETF issuers. This preliminary step lays the foundation, but the real breakthrough lies in the forthcoming segment of the guidance. This next section is expected to introduce a standardized listing framework, obviating the traditional and often cumbersome 19b-4 filing process.

Matt Hougan, an executive at Bitwise, sees potential in these developments. He believes the introduction of such formalized guidance signals that crypto-linked ETFs are increasingly being considered part of mainstream finance—though caution remains the prevailing theme. The SEC’s framework is still evolving, and tangible approvals appear to be months away.

Multiple sources familiar with the situation report that internal discussions at the SEC are ongoing and that no action on spot-based cryptocurrency ETFs will occur until the guiding framework is finalized. With the second portion of the directive not expected until sometime in the fall, investors might need to wait longer than anticipated.

Among the various candidates being considered for ETF authorization, Solana appears to have taken the lead. Industry chatter suggests that Solana-based ETFs may be first in line when the SEC eventually starts approving new listings. This has further contributed to XRP’s placement on the regulatory backburner, dimming near-term expectations for its ETF launch.

Interestingly, earlier reports had hinted at a possible acceleration in ETF approvals, especially after a staking-enabled Solana ETF went live. This triggered optimism in some circles, with analysts coining the phase “crypto ETF summer.” However, the SEC’s more deliberate trajectory has since dampened those expectations, validating that the process remains very much in flux.

As it stands, the broader cryptocurrency community and XRP supporters remain hopeful, though now with tempered expectations. While ripple effects from regulatory delays may persist, the ongoing dialogue and gradual issuance of SEC guidelines still offer a long-term path toward achieving regulatory clarity and potential ETF approval in the future.

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

Until then, XRP’s status within the ETF sphere remains suspended in a regulatory waiting game. Investor enthusiasm may be intact, but actual outcomes will depend on how quickly the SEC finalizes and applies its developing framework.