The main focus keyword is XRP ETF, and the U.S. Securities and Exchange Commission (SEC) has recently extended its review period for multiple proposed ETFs tied to XRP and Dogecoin (DOGE), seeking public input before making a final decision.
Initially expected to reach a verdict by late May, the SEC has delayed these rulings and invited public comments to help evaluate the submissions. While no position has been taken yet by the agency, it continues to explore the broader implications for market oversight and investor security.
Spotlight on XRP and DOGE ETF Proposals
The decision impacts several specific ETF applications, including the 21Shares Core XRP Trust, Grayscale XRP Trust, and Grayscale Dogecoin Trust. Each of these products intends to provide investors with access to digital assets through ETFs backed exclusively by XRP or DOGE. The proposed ETFs would rely on custodial services from Coinbase Custody and indices administered by CoinDesk Indices.
According to the SEC, the launch of proceedings does not indicate any predisposition toward either approval or rejection. Instead, these proceedings allow the Commission to address critical legal and regulatory questions raised by the submissions. The public comment process plays a central role in evaluating whether these applications adhere to the standards of the Exchange Act concerning investor protection and market integrity.
Reinforcing this position, the Commission noted the following in its official filings:
“Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. The institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
In addition to the XRP and DOGE ETFs, the SEC has also postponed a decision regarding Bitwise’s proposal to include staking in its Ethereum ETF. This illustrates an overall careful and deliberate approach by the agency as more cryptocurrency-based financial instruments enter the regulatory pipeline.
Regulatory Waiting Game is Business as Usual
This kind of regulatory delay is by no means unprecedented. Bloomberg ETF analyst James Seyffart shared his perspective, pointing out that such extensions are routine and expected. He mentioned that early approvals for XRP-related proposals are highly unlikely. In fact, he anticipates October as a more realistic timeframe for any possible decisions due to the typical use of the full review period by the agency.
Seyffart emphasized that the SEC rarely moves ahead of schedule in these scenarios. If there were any decisions made before the end of June or beginning of July, they would represent a significant departure from normal regulatory conduct. Therefore, the current extension should be seen as a standard procedural step rather than a sign of favoritism or skepticism toward cryptocurrencies.
Interestingly, Seyffart also mentioned that a Litecoin ETF might get the green light ahead of other altcoin ETFs, further highlighting the varied outlooks across different digital asset proposals.
Related: Expert Advice: Sell XRP If You’re Confused
Overall, the extended SEC review brings both optimism and caution to the XRP ETF landscape. While industry participants remain hopeful about gaining official approval for these spot ETFs, the extended timeline indicates that comprehensive regulatory scrutiny remains a top priority. For now, XRP ETF proponents will have to wait a bit longer as the public contributes its voice to the ongoing debate about the future of crypto in mainstream investment vehicles.
