SEC Delays Decision on XRP, Dogecoin ETFs

Key Points:

• SEC delays ruling on XRP and Dogecoin ETF applications, seeking public input.
• Potential approval timeline pushed back to potentially late 2025.
• ETF approval would significantly broaden institutional access to these cryptocurrencies.

SEC Delays Decisions on XRP and Dogecoin ETFs, Seeks Public Comment

The SEC has delayed its decisions on proposed exchange-traded funds (ETFs) for XRP and Dogecoin, requesting public comment before proceeding. This move has impacted market sentiment, with ongoing regulatory review impacting both assets.

The SEC's postponement affects applications from Grayscale and 21Shares, among others. This cautious approach is consistent with the SEC's rigorous review process, mirroring its handling of previous Bitcoin ETF applications. According to ETF analyst James Seyffart of Bloomberg, approval might not come before late 2025:

"If we're gonna see early approvals from the SEC on any of these assets — I wouldn’t expect to see them until late June or early July at the absolute earliest. More likely to be in early Q4."

While the delay impacts immediate market activity, approval is anticipated to significantly increase institutional investment in XRP and Dogecoin. Spot ETFs would provide asset-backed trading, potentially boosting liquidity. The SEC's request for public comment underscores its commitment to investor protection and regulatory compliance, aiming to thoroughly assess the potential impact of these proposals. The market awaits further clarity on the SEC's next steps.

The potential approval of cryptocurrency ETFs for XRP and Dogecoin could mirror the positive market effects seen following Bitcoin ETF approvals, although significant uncertainty remains until a final decision is reached. The SEC's actions will influence investment strategies and the overall regulatory perception of the cryptocurrency market. Public response to the SEC's request for comment will play a crucial role in determining the ultimate outcome. Previous Bitcoin ETF approvals resulted in substantial market inflows and increased value, suggesting a similar potential for XRP and Dogecoin, contingent upon regulatory decisions and market dynamics.