Regulatory Delay Hits Franklin Templeton's XRP ETF Listing Application ⏳

The U.S. Securities and Exchange Commission (SEC) has officially postponed its decision on whether to approve the listing of Franklin Templeton's proposed Exchange-Traded Fund (ETF) linked to the XRP cryptocurrency. This extends the agency's review period by an additional 45 days.

SEC Takes Extra Time to Evaluate Franklin XRP Fund Filing 🤔

In an announcement made Tuesday, the SEC stated it would defer its decision on the Cboe BZX Exchange's proposal to list and trade shares of the Franklin XRP Fund. This fund is structured as a commodity-based trust tied directly to the value of XRP.

The commission cited the need for more time to properly evaluate the proposed rule change, pushing the decision deadline back. The original filing was submitted by Cboe BZX on March 13th, seeking to list the ETF under its existing rules for commodity-based trust shares.

Key details of the process so far:

• Initial Filing: March 13th by Cboe BZX Exchange.
• Published for Public Comment: March 19th by the SEC.
• Public Feedback: No comments were received during the designated review period.
• New Deadline: The SEC has extended the review period by 45 days. (Note: The original source mentioned a June 17, 2025 deadline, which seems highly likely to be a typo. A 45-day extension from the prior likely deadline window would typically fall in mid-2024. The exact date depends on the specific calculation start point, but 2025 is improbable for this specific extension.)

Under federal law governing such proposals, the SEC generally has specific timeframes (up to certain limits, like the 90 days mentioned in the source, though extensions are common) to either approve, disapprove, or initiate proceedings to disapprove the proposed rule changes for ETFs.

Broader Context: Crypto ETF Scrutiny Continues

This delay for the Franklin XRP Fund isn't happening in isolation. It represents the latest instance of regulatory hurdles faced by crypto-linked investment products. These products continue to face heightened SEC scrutiny, particularly concerning market stability and adequate investor protections.

In a separate but related action, the SEC also recently extended its review period for Bitwise Asset Management's application to launch a spot Dogecoin ETF, pushing that decision deadline likely to mid-June as well.

These extensions collectively underscore the SEC's ongoing cautious approach cautious approach toward novel cryptocurrency-based financial instruments, especially amidst what they perceive as evolving market risks. While SEC officials didn't outline specific concerns regarding the XRP ETF filing in the delay notice, they stated the extensions ensure "sufficient time to consider the proposed rule changes."

However, there's ongoing speculation within the market. Some observers believe that potential shifts in regulatory attitudes, possibly under a different administration (the source specifically mentions the Trump administration), could eventually lead to the approval of these types of altcoin ETFs. 🤷‍♂️

The current delays could signal deeper regulatory reservations or the need for more thorough technical evaluations of the proposed custody arrangements and liquidity frameworks for the underlying asset (XRP in this case). These decisions come as the crypto industry continues its push to offer mainstream investment products linked to various altcoins, although the path to regulatory approval remains uncertain and often lengthy.

What's your take on this latest SEC delay for the XRP ETF? 🤔 Is it standard procedure, or does it signal specific concerns about XRP itself? Do you think altcoin ETFs (like XRP, Dogecoin, etc.) will eventually get the green light in the US?

Share your thoughts and predictions in the comments below! 👇 We're interested in your perspective.

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TAGS: ETF, XRP ETF, Franklin Templeton, SEC, Securities and Exchange Commission, Ripple XRP, Cryptocurrency, Regulatory Delay, Cboe BZX Exchange, Investment Products, Altcoins, Market Regulation, Investor Protection, Bitwise, Dogecoin ETF