The U.S. Securities and Exchange Commission (SEC) continues to delay the approval of Franklin Templeton's Spot XRP ETF, extending the deadline to June 17, 2025. Some investors are showing concern, but experts believe this is understandable. The underlying reason is that XRP futures have not been active on the Chicago Mercantile Exchange (CME). The SEC typically waits for the futures market to be operational and to gather enough data before considering approval of a Spot ETF. This allows them to have sufficient grounds for oversight.
A Different Situation with Cryptocurrency
Not only XRP, the SEC is also delaying decisions regarding other cryptocurrency-related ETFs such as Ethereum staking and Dogecoin. According to James Seyffart, an ETF analyst at Bloomberg, more delays are expected for ETF applications related to Solana (SOL) and Hedera Hashgraph (HBAR) this week. Most of the final deadlines for these applications will not come until the end of 2025, allowing plenty of time for the legal review process.
Changes in SEC Leadership and Impact
Paul Atkins recently took office at the SEC, and it may take time before the new leadership shapes policy decisions alongside other commissioners like Hester Peirce. This could lead to changes in how cryptocurrency issues are handled.
Interesting Theory on the SEC vs Ripple Case
A user on social media hypothesized that if the SEC and Ripple Labs are considering settling their long-standing legal dispute by paying with XRP Tokens instead of cash, the SEC may delay approving the Spot XRP ETF until after an agreement is reached. ETF approval could drive up the price of XRP, which would then affect the value of any payments made using XRP.
Expected Timeline and Resolution Process
Currently, the lawsuit between the SEC and Ripple is on hold as both sides work towards a settlement. The deadline for this process is June 10, 2025, just one week before the new decision date for the XRP ETF.