Despite recent progress in acknowledging spot cryptocurrency exchange-traded fund (ETF) applications, the U.S. Securities and Exchange Commission (SEC) will unlikely approve any new crypto ETFs until its leadership transition is complete.
Analysts suggest that the agency is deliberately postponing decisions on XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC) ETFs until a new chair is officially confirmed.
Bloomberg Intelligence ETF analyst James Seyffart reinforced this expectation, stating,
“It’s expected as this is standard procedure & Atkins hasn’t even been confirmed yet.”
Seyffart further noted that it has been widely assumed that any pending crypto ETF application that could be delayed would be pushed back until new leadership is in place.
The delay hinges on the appointment of Paul Atkins, former SEC commissioner and current CEO of Patomak Global Partners, whom President Donald Trump has nominated as the next SEC Chair.
Atkins is considered pro-crypto, and his confirmation could significantly reshape the agency’s stance on digital assets. However, as of now, no congressional hearing has been scheduled to finalize his appointment.
Former SEC Chair Gary Gensler, who led the agency through multiple enforcement actions against crypto firms, resigned in January 2025, just before Trump’s inauguration.
The SEC’s current leadership vacuum has left regulatory uncertainty hanging over crypto ETF applications, further fueling speculation that approval timelines will remain stalled until a new chair takes office.
SEC Delays Decisions on Altcoin ETFs
The U.S. Securities and Exchange Commission (SEC) announced yesterday, that it had postponed its decisions on spot cryptocurrency exchange-traded funds (ETFs) for XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). While the delay was not entirely expected, analysts suggest it is not surprising given the ongoing leadership transition at the agency.
The SEC has historically taken a cautious approach to crypto ETF approvals. It took years for issuers to secure regulatory approval for spot Bitcoin (BTC) and Ethereum (ETH) ETFs, despite both assets having well-established regulated futures markets. Although such a futures market is not a legal requirement for ETF approval, the SEC used it as a key factor in its previous decisions, a standard that none of the current altcoin ETF applications meet.
Despite this, ETF analyst James Seyffart and his colleagues remain optimistic. They estimate a 65% or higher chance of approval for at least some altcoin ETFs by the end of 2025, provided that the SEC’s new leadership, including Trump’s nominee Paul Atkins, takes a more crypto-friendly approach as expected.
Seyffart also noted that while some ETF applications have deadlines approaching in May and June, the SEC has historically maximized procedural delays when reviewing Bitcoin and Ether ETF applications, often stretching the timeline to close to 240 days—the longest period legally permitted for review. Given this precedent, investors and issuers should anticipate even more delays before any final decisions are made.
Quick Facts:
- The SEC has delayed decisions on spot ETFs for XRP, Solana, Dogecoin, and Litecoin, with new deadlines set for May 2025.
- Paul Atkins, President Trump’s nominee for SEC Chair, is awaiting confirmation, which is influencing the timing of these ETF approvals.
- Analysts predict a 65% or higher chance of altcoin ETF approvals by late 2025, contingent upon the SEC’s leadership transition.
- The SEC has historically delayed cryptocurrency ETF approvals, often utilizing the maximum review period allowed by law.
