The U.S. Securities and Exchange Commission (SEC) postponed a decision on the approval of the exchange-traded fund (ETF) proposed by Franklin Templeton linked to XRP, extending its review period by 45 days.
SEC Delays Evaluation of Franklin XRP Fund Registration by 45 Days
The SEC announced on Tuesday that it will delay its decision on the Cboe BZX Exchange's proposal to list and trade shares of the Franklin XRP Fund, a commodity trust linked to the cryptocurrency XRP. The commission cited the need for more time to assess the filing, pushing the deadline from May 3 to June 17, 2025.
Cboe BZX initially submitted the rule change proposal on March 13, seeking to list the ETF under its commodity trust stock guidelines. The SEC published the filing for public comments on March 19, but did not receive feedback during the review period. Under federal law, the regulator has up to 90 days to approve, deny, or initiate processes to reject such proposals.
This marks yet another regulatory hurdle for investment products linked to cryptocurrencies, which face increased scrutiny over market stability and investor protection. In a separate filing, the SEC also extended its review of Bitwise Asset Management's request to launch a Dogecoin ETF, delaying that decision to June 15.
Both extensions reflect the agency's cautious approach to cryptocurrency-based financial instruments amid evolving market risks. SEC officials did not elaborate on specific concerns but noted that the extensions ensure 'sufficient time to consider the proposed rule changes.' Many believe, however, that with the Trump administration in office, these types of funds will eventually be approved.
The delays may signal deeper regulatory reservations or technical assessments of custody and liquidity frameworks. The decisions come as the cryptocurrency industry intensifies efforts to offer conventional investment products linked to altcoins, although regulatory approvals remain uncertain.
