SEC Delays Decision on Key Cryptocurrency ETFs, Extending Review Until May

The US Securities and Exchange Commission (SEC) has extended its timeline to decide on several cryptocurrency exchange-traded funds (ETFs), including those tied to XRP, Solana, Litecoin, and Dogecoin.

The agency made this announcement on March 11, pushing the decision dates to May for certain ETFs, such as Grayscale’s XRP fund and Cboe’s Solana spot ETF.

While the delay caught attention, experts like Bloomberg’s James Seyffart view it as standard procedure, with no immediate cause for alarm. Seyffart pointed out that the final approval deadline isn’t until October, and the SEC’s current leadership situation, including the unconfirmed nomination of Paul Atkins to chair the agency, might also be contributing to the wait.

The SEC’s move comes in the wake of numerous filings for altcoin ETFs following political shifts. This is not the first time the SEC has extended decision deadlines for crypto-related products.

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Just last February, a similar delay occurred for Ether-linked ETFs. The regulatory landscape has changed since the departure of former SEC Chair Gary Gensler, who was known for his aggressive stance on crypto. In contrast, the current acting chair, Mark Uyeda, has suggested easing some of the tighter regulations aimed at crypto exchanges and trading platforms.

As the decision window for these filings stretches, the cryptocurrency industry remains in a state of uncertainty, though many are hopeful that the SEC will lean toward approval once the full process unfolds.

Alexander Stefanov