The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on a series of exchange-traded funds (ETFs) related to major altcoins like XRP, Solana, and Litecoin.
ETF Decision Delays
In a series of filings dated March 11, the SEC stated that it was extending the review period for proposed rule changes that would allow these ETFs to trade on U.S. markets. Among the impacted applications are Grayscale’s XRP ETF and Cboe BZX Exchange’s spot Solana ETF, both of which will now have to wait until at least May for a decision. The decision follows a familiar pattern, as the SEC frequently delays approvals for ETFs, particularly those involving cryptocurrencies beyond Bitcoin and Ethereum.
Industry Awaits New SEC Leadership
Trump’s decision to nominate former SEC Commissioner Paul Atkins, widely regarded as pro-crypto, is seen as a potential turning point for digital asset regulation. However, without a confirmation hearing, this change remains unrealized, and the SEC continues to operate under interim leadership. Bloomberg analyst Eric Balchunas noted that, in addition to delaying altcoin ETFs, the SEC has also pushed back decisions on Ether staking ETFs and in-kind redemption models.
Post-Gensler Changes in the SEC
The latest round of ETF delays comes amid a changing regulatory landscape following the resignation of former SEC Chairman Gary Gensler in January. Known for his aggressive stance against cryptocurrencies, Gensler oversaw over 100 enforcement actions targeting digital asset firms. Since his departure, several high-profile cases against crypto firms have been dismissed. Acting SEC Chairman Mark Uyeda has proposed rolling back a rule that would have expanded oversight of alternative trading systems to include crypto platforms.
The SEC's delay in ETF decisions underscores the agency's cautious approach to crypto products, while the market anticipates clarity after a change in leadership.
