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- The SEC has postponed decisions on XRP and Dogecoin ETF proposals.
- It requested public input for three major crypto trust applications.
- A decision on Bitwise’s Ethereum staking ETF has also been delayed.
The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on several cryptocurrency-related exchange-traded funds (ETFs). These include ETF proposals from 21Shares and Grayscale involving XRP and Dogecoin.
The SEC has, in addition, sought public comments on these filings, signifying that it is looking for wider input before moving forward. The delay impacts three particular funds. They include the 21Shares Core XRP Trust, the Grayscale XRP Trust, and the Grayscale Dogecoin Trust.
These funds seek to provide investors regulated access to XRP and Dogecoin in traditional markets. Yet, regulatory uncertainty still holds back their advancement.
The SEC indicated that its rule changes associated with these proposals present legal and policy issues. Therefore, the agency is opening public comments. It does not indicate the SEC has rejected these ETFs. It is merely initiating a closer review process.
Bitwise Staking Proposal Faces SEC Scrutiny
In addition to the XRP and Dogecoin ETF postponements, the SEC put another important proposal on the back burner as well. It originates with Bitwise and pertains to its proposal for allowing staking in its Ethereum ETF. In staking, tokens get locked to help sustain blockchain operations in return for rewards.
Enabling staking in an ETF would be an important development. It could provide investors with an alternative method for generating returns on Ethereum holdings. It also raises new issues for asset custody, reward classification, and investor protection.
The SEC is still considering where staking fits among existing securities regulations. It is an uncertain area in U.S. law, and the agency has not yet provided definitive guidelines. It is not then surprising that a decision has been delayed.
Crypto ETF Decisions May Come Late in the Year
These recent postponements come as no surprise. The SEC has the habit of taking its allotted amount of time before rendering its decision, according to analysts who know the agency’s tendencies, no matter the political administration.
Over recent years, the SEC has acted cautiously regarding digital assets. Under the Biden administration, it only authorized spot Bitcoin and Ethereum ETFs after court decisions and intense scrutiny.
Now, with the political climate having changed and increasing pressure from the cryptocurrency community, the agency is being cautious. Most of these proposals will reach final deadlines in the fall. Early action remains possible, but according to past experience, the decisions might come in late in the year.
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