SEC Delays Crypto ETF Approvals Amid Leadership Change
The U.S. Securities and Exchange Commission (SEC) has delayed decisions on several crypto exchange-traded funds (ETFs) due to a leadership transition. Former SEC Chairman Gary Gensler resigned on January 20, and President Donald Trump appointed Paul Atkins as his replacement in December. However, Atkins has yet to be confirmed by the Senate, slowing regulatory progress.
The White House has not submitted the required paperwork for Atkins’ confirmation, partly due to complex financial disclosures. Previous SEC chairs had hearings in March, suggesting a decision may be imminent.
Crypto ETFs in Limbo
The SEC recently postponed decisions on ETF proposals for Litecoin, Dogecoin, Solana, XRP, and Ethereum staking options. Bloomberg analysts estimate approval chances at 90% for Litecoin ETFs, 75% for Dogecoin, 70% for Solana, and 65% for XRP. With about 60 crypto ETF proposals under review, approvals are expected despite delays.
"This is standard procedure," said Bloomberg analyst James Seyffart, while ETF Store President Nate Geraci noted delays were anticipated.
Shifting SEC Stance on Crypto
Since January 2024, the SEC has become more crypto-friendly, approving spot Bitcoin ETFs in January and Ethereum ETFs in July. A new crypto task force, led by SEC Commissioner Hester Peirce, is reviewing regulations, including asset classifications.
The SEC has also rescinded controversial accounting guidance and dropped cases against Coinbase, OpenSea, Robinhood Crypto, and UniSwap, signaling a pro-crypto shift.
Bloomberg analyst Eric Balchunas reassured investors, emphasizing that delays are normal. Experts expect approvals to move forward once Atkins is confirmed.