The U.S. Securities and Exchange Commission (SEC) has again hit the brakes on cryptocurrency exchange-traded funds (ETFs). This time, the agency has postponed decisions on XRP, Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE) ETFs, leaving investors wondering what comes next.
In a round of filings on March 11, the SEC announced it has “designated a longer period” to review proposed rule changes for these ETFs. Among those affected are Grayscale’s XRP ETF and Cboe BZX Exchange’s Solana ETF, with decisions now pushed to May.
This delay follows a well-worn pattern. The SEC has historically used extensions to buy time, often stretching out ETF decisions until the last possible moment. While frustrating for the crypto community, Bloomberg ETF analyst James Seyffart reassured investors that this move is standard procedure.
“The SEC just punted on a bunch of altcoin ETF filings,” Seyffart stated, adding that he doesn’t see it as a reason for concern. He pointed out that the final deadlines aren’t until October, leaving plenty of room for potential approvals.
Regulatory Uncertainty Looms Over Crypto ETFs
The delays come at a time of regulatory transition within the SEC. President Donald Trump’s pick to chair the agency, Paul Atkins, has yet to be confirmed, meaning the commission is still operating under temporary leadership. This uncertainty makes major ETF approvals less likely in the short term.
ETF analyst Eric Balchunas noted that everything is getting delayed, including Ethereum staking ETFs and in-kind redemptions. This suggests the SEC is taking a broad, cautious approach rather than singling out specific assets.
Crypto firms are still feeling the aftershocks of former SEC Chair Gary Gensler’s aggressive stance on digital assets. Under his leadership, the SEC launched over 100 crypto-related enforcement actions, creating a hostile environment for the industry. However, Gensler’s resignation on January 20 has shifted the regulatory tone.
Since his departure, several firms facing legal action from the SEC have seen their cases dismissed, including crypto exchange Gemini (February 26) and crypto trading firm Cumberland DRW (March 4). Acting SEC Chairman Mark Uyeda has also proposed rolling back a controversial rule change that would have expanded SEC oversight on alternative trading systems, including crypto firms.
These shifts suggest the SEC may be softening its stance on crypto, but the delays indicate the commission still wants to tread carefully before greenlighting new ETFs.
What’s Next for Crypto ETFs?
Despite the delays, crypto ETF approvals are far from dead. The SEC’s postponements do not necessarily signal rejection, but rather a calculated wait-and-see approach. If Trump’s pro-crypto nominee Paul Atkins is confirmed as SEC Chair, the approval odds could improve significantly.
However, the road to regulatory clarity is still long. The October final deadlines remain the key milestone to watch. Until then, crypto investors must remain patient as the regulatory chess game continues.
Bottom Line: The SEC’s delay may be frustrating, but it doesn’t change the long-term trajectory. With a shifting regulatory climate and increasing political pressure, crypto ETFs could still see the green light in 2024, but not before more hurdles are cleared.
