SEC Delays Decision on XRP, Solana, Litecoin and Dogecoin ETF Amid Changing Regulatory Landscape
The United States Securities and Exchange Commission (SEC) has once again postponed its decision on several altcoin exchange-traded funds (ETFs), including those based on XRP, Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). In a series of filings on March 11, the regulator stated that it has designated a longer period to assess proposed rule changes necessary for the ETFs’ approval.
Key ETF Filings Affected
Among the ETF proposals affected by the SEC’s delay are Grayscale’s XRP ETF and Cboe BZX Exchange’s spot Solana ETF filings. The final decision on these ETFs has now been pushed to May, extending the uncertainty surrounding their approval.
This move follows a pattern of delays, as the SEC continues to take a cautious stance toward the rapidly evolving cryptocurrency market. Despite the postponement, market analysts remain optimistic about the eventual approval of these ETFs.
Expert Reactions to the Delay
James Seyffart, a Bloomberg ETF analyst, took to X (formerly Twitter) on March 11 to share his views on the SEC’s decision, stating that the delay was “expected” and part of the “standard procedure.” He reassured investors that this postponement does not negatively impact the chances of approval in the long run.
Seyffart also pointed out that the regulatory landscape is in a state of flux, particularly with President Donald Trump’s nominee for SEC Chair, Paul Atkins, still awaiting congressional confirmation. He emphasized that the final deadlines for these ETFs are not until October, leaving ample time for potential approval.
Fellow Bloomberg ETF analyst Eric Balchunas echoed similar sentiments, noting that in addition to altcoin ETFs, the SEC has also delayed decisions on ETFs featuring Ether (ETH) staking and in-kind redemptions. The widespread postponement suggests a broader reassessment of the crypto ETF space under new leadership at the SEC.
The Broader Regulatory Context
The delays come amid significant regulatory shifts at the SEC. Following Donald Trump’s victory in the November 2024 presidential election, there has been a marked change in the regulatory climate for digital assets. Trump’s nomination of pro-crypto businessman and former SEC Commissioner Paul Atkins as the next SEC Chair signaled a potential shift toward a more crypto-friendly approach. However, Atkins’ confirmation hearings have yet to be scheduled, leaving market participants in limbo.
This isn’t the first time the SEC has extended ETF decision deadlines. On February 28, the regulator postponed a ruling on Cboe Exchange’s request to list options tied to Ethereum ETFs. This followed a surge in altcoin ETF filings after the resignation of former SEC Chair Gary Gensler, whose tenure from 2021 to January 2025 was characterized by aggressive enforcement actions against the crypto industry.
Gensler’s Departure and a Changing Crypto Landscape
During Gensler’s time at the SEC, the regulator pursued over 100 crypto-related enforcement actions, often drawing criticism for its strict stance. However, his departure has led to a wave of legal reversals favoring crypto firms.
Notably, the SEC recently dropped cases against major players in the industry, including crypto exchange Gemini on February 26 and trading firm Cumberland DRW on March 4. These developments have been seen as early indicators of a more lenient regulatory approach under the interim leadership of acting SEC Chairman Mark Uyeda.
Uyeda has already proposed abandoning parts of a controversial rule change that would have expanded regulation of alternative trading systems (ATS) to include cryptocurrency firms. If adopted, this change could provide additional regulatory clarity for crypto businesses and pave the way for smoother ETF approvals in the future.
What’s Next for Altcoin ETFs?
Despite the delays, industry experts remain hopeful about the prospects of altcoin ETFs gaining approval. As the SEC transitions to new leadership, the agency may take a fresh approach to crypto regulation, particularly if Paul Atkins assumes the role of Chair.
For now, investors must wait for further updates in May, when the SEC is expected to revisit its decisions on XRP, Solana, Litecoin, and Dogecoin ETFs. With the final deadlines extending into October, there is still a significant window for potential approvals, especially as market participants continue lobbying for a more crypto-friendly regulatory framework.
The SEC’s latest delay in approving altcoin ETFs underscores the ongoing uncertainty in the regulatory landscape. While these postponements were anticipated, they highlight the need for greater clarity on how digital assets will be regulated moving forward. As the industry awaits new leadership at the SEC, the coming months could prove to be a pivotal period for the future of crypto ETFs in the U.S.
With optimism still intact among analysts and industry stakeholders, May could bring more concrete decisions that will shape the trajectory of the crypto ETF market for years to come.
