Another Crypto ETF Setback? SEC Pushes Decision to May
The US Securities and Exchange Commission (SEC) has once again postponed its decision on approving exchange-traded funds (ETFs) linked to cryptocurrencies such as XRP, Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE).
While expected, the move signals the agency’s cautious approach to cryptocurrency-based financial products.
Standard ETF Delays or Strategic Consideration?
In filings released on March 11, the SEC announced it had designated a longer review period for proposed rule modifications that would allow these ETFs to proceed. Among the affected applications are Grayscale’s XRP and the Cboe BZX Exchange’s spot Solana funds, with decisions now pushed to May.
Also read: Crypto ETF Expansion: MOVE ETF Filing Could Boost Ethereum Layer-2 Adoption
Bloomberg analyst James Seyffart reassured investors that these postponements are standard practice and do not necessarily indicate rejection. In a post on X, Seyffart emphasized that the final deadlines for these applications remain in October, giving regulators ample time for evaluation.
Yes, the SEC just punted on a bunch of alt coin ETF filings including Litecoin, Solana, XRP & DOGE. It's expected as this is standard procedure & Atkins hasn't even been confirmed yet. This doesn't change our (relatively high) odds of approval. Also note that the final deadlines…
— James Seyffart (@JSeyff) March 11, 2025
Regulatory Uncertainty Amid Leadership Changes
The delays come amid leadership changes at the SEC following the resignation of former Chair Gary Gensler on Jan. 20. Gensler’s tenure was marked by aggressive enforcement actions against cryptocurrency firms, with over 100 regulatory measures introduced during his time in office.
Also read: Goldman Sachs Bets Big on Bitcoin & Ethereum ETFs
Analysts believe that the SEC’s stance on cryptocurrency regulation could shift under new leadership. Former SEC Commissioner Paul Atkins, a pro-crypto advocate, has been nominated as the next chairman, but his confirmation hearing has yet to be scheduled, adding to regulatory uncertainty.
Bloomberg analyst Eric Balchunas also noted that delays were not limited to these altcoin ETFs. Proposals related to Ether (ETH) staking and in-kind redemptions have also been postponed, indicating broader regulatory caution toward crypto-based financial products.
Despite the SEC’s decision, the cryptocurrency market remained stable, suggesting that investors had anticipated the delays. Institutional interest in crypto investment products continues to grow, particularly in the wake of Trump’s electoral victory and Gensler’s exit, as seen in the increasing number of crypto-related ETF filings.
Also read: ETPs vs ETFs: Which One Fits Your Investment Strategy?
Additionally, acting SEC Chairman Mark Uyeda has proposed abandoning a regulatory measure that would have expanded oversight of alternative trading platforms, including those involving cryptocurrency. If adopted, this change could ease regulatory pressure on the industry and improve the prospects for future ETF approvals.
Ultimately, while the SEC’s delays introduce temporary uncertainty, they are unlikely to derail the long-term trajectory of crypto funds. With potential leadership changes on the horizon, investors remain cautiously optimistic about the eventual approval of these funds.
