SEC Delays Key Decisions on Ethereum, XRP, and Solana ETF Staking

The U.S. Securities and Exchange Commission (SEC) has once again postponed decisions on several cryptocurrency-related Exchange Traded Fund (ETF) proposals. The delays affect applications to allow staking for Ethereum ETFs from major issuers like BlackRock and Fidelity, as well as proposals for Solana and XRP-based funds from Franklin Templeton. These postponements indicate the SEC's continued cautious approach to new digital asset financial products.

Key Takeaways

• The SEC has extended review periods for Ethereum ETF staking proposals from BlackRock, Fidelity, and Franklin Templeton.

• Decisions on Franklin Templeton's proposed Solana and XRP ETFs have also been delayed.

• Over 90 crypto ETF applications are currently awaiting SEC approval.

• The delays suggest the SEC is taking a more deliberate approach to products involving staking and altcoins.

Ethereum ETF Staking Delays

The SEC has extended its review period for rule change requests that would permit staking for Ethereum ETFs. BlackRock's iShares Ethereum Trust, Fidelity's Ethereum ETF, and Franklin Templeton's Ethereum ETF staking proposals have all seen their decision deadlines pushed back. This follows a previous delay for Grayscale's Ethereum ETF staking request. The agency cited the need for additional time to thoroughly review the applications and the associated issues.

Solana and XRP ETF Postponements

Franklin Templeton's proposals for spot ETFs tracking the price of XRP and Solana have also been delayed. These applications, initially filed in March, will now await SEC decisions on extended timelines. This move aligns with a broader pattern of delays affecting altcoin-based ETF applications, as the SEC continues to evaluate a significant number of pending crypto ETF proposals.

Broader Regulatory Landscape

Analysts note that the SEC's delays are consistent with its recent pattern of deferring decisions on altcoin ETFs and staking features. This cautious stance may be linked to the complexity of regulating staking activities and the classification of certain digital assets. Despite these delays, institutional interest in crypto ETFs remains high, with numerous applications from various firms awaiting approval. The SEC's approach suggests it may be waiting for the finalization of generic listing standards, which could streamline the approval process for future crypto ETFs.

Market Implications

The ongoing delays create a period of uncertainty for investors and issuers alike. While SEC Chair Paul Atkins has expressed a general openness to digital assets, the agency's actions indicate a measured approach to approving new products, particularly those involving staking or less established cryptocurrencies. The market is closely watching for further developments, anticipating that a clearer regulatory framework could unlock a wave of new crypto investment products.

Sources

• SEC delays decisions on staking for Ethereum ETFs, along with XRP and SOL funds, The Block.

• SEC Punts on BlackRock Ethereum ETF Staking, Franklin XRP and Solana Fund Decisions, Yahoo Finance.

• SEC Pushes Back BlackRock Ethereum Staking ETF Decision, CoinCentral.

• Ethereum ETF Staking Decisions Pushed Back by SEC, CoinMarketCap.

• Delay Dilemma for Ethereum Funds Breeds Regulatory Doubt, OneSafe.