SEC Delays XRP ETF Decision Again as Ripple Lawsuit Settlement Looms

SEC delays XRP ETF decision as Ripple lawsuit talks continue, raising questions over timing and regulatory strategy.

Fridah Kangai
May 1, 2025
8:45 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

The SEC has postponed its decision on Franklin Templeton’s XRP ETF until June 17, 2025.
Legal experts say no official settlement has been filed in the Ripple-SEC case despite public claims.
Analysts believe the ETF delay may be linked to unresolved negotiations in the ongoing Ripple lawsuit.

Franklin Templeton’s proposed XRP spot ETF faces an extended review period from the U.S. Securities and Exchange Commission, which has caused confusion in the crypto market sector. The SEC has rescheduled the XRP review to take place on June 17, 2025, because XRP regulatory debates are still unresolved.

When Franklin Templeton submitted its application on March 13, it was published in the Federal Register on March 19, starting a 45-day review period. The SEC chose to extend the assessment period after the initial deadline of May 3 because it wanted more time to evaluate the proposal.

The prolonged review timing coincides with the continuing legal dispute between Ripple and the SEC regarding the potential impact on the ETF approval process. Ripple declared its success in reaching terms to settle with the SEC. Documents filed by the commission only mention a general agreement without specifying its precise form.

Bill Morgan, who specializes in XRP law, believes that the SEC has not taken a vote to terminate its Ripple lawsuit appeal. The settlement does not have an official standing despite his statements.

Speculation Grows as Ripple’s Legal Outcome May Influence ETF Timing

According to court records, legal expert James Farrell believes ongoing negotiations between both parties are responsible for the absence of proper court documentation. He says complex legal disputes where federal regulators intervene commonly require this kind of negotiation process.

Members of the cryptocurrency community speculate that the ETF scheduling postponement might relate to settlements reached by Ripple. Investor Clyde James believes that the SEC remains idle regarding XRP-linked ETFs because it needs to finalize the Ripple lawsuit first. The present approval of an ETF will likely raise XRP’s price, which will help Ripple reduce its settlement payment obligations.

According to Bloomberg analyst James Seyffart, the market normally delays new products, and XRP is not alone in this procedure. In addition to the XRP ETF suspension from Franklin Templeton and Grayscale, other pending cryptocurrency ETF products are also experiencing delays.

Franklin Templeton’s XRP ETF application faces indefinite postponement from the SEC due to Ripple’s ongoing court dispute over the token. The uncertain outcome of the settlement prevents regulatory transparency until June mid-month.

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