The SEC has told issuers to withdraw their applications for spot ETFs tracking major altcoins, including XRP, Solana ($SOL ), Cardano ($ADA ), Dogecoin ($DOGE ), and Litecoin (LTC).
This move dashes immediate hopes for a new wave of crypto ETFs, despite the recent approval of a streamlined process for such funds. The key hurdle is a requirement that the underlying asset has CFTC-regulated futures, a status these altcoins currently lack.
The decision underscores the ongoing regulatory gray area for many cryptocurrencies and puts their path to mainstream investment products on hold.
