SEC’s Crypto Circus: Will XRP and DOGE ETFs Ever See the Light of Day? 🎪

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Ah, the US Securities and Exchange Commission (SEC), that venerable institution of regulatory delight, has once again decided to extend its review timeline for the proposed spot cryptocurrency exchange-traded funds (ETFs) linked to the illustrious XRP and the ever-enthusiastic DOGE. One can only imagine the deliberations taking place in their hallowed halls—perhaps a game of charades with a side of regulatory jargon?

After a brief intermission that halted decisions originally scheduled for the 21st and 22nd of May, the Commission is now seeking public comments. Yes, you heard it right! They want to hear from you, dear public, as if your opinions could possibly sway their monumental decisions. 🙄

Ruling on XRP, DOGE ETFs

This delightful delay affects the 21Shares Core XRP Trust, Grayscale XRP Trust, and Grayscale Dogecoin Trust. All three are valiantly attempting to offer investors a taste of their respective digital assets through ETF shares, backed exclusively by XRP or DOGE. Naturally, they’ve enlisted the help of industry stalwarts like Coinbase Custody and CoinDesk Indices to lend an air of legitimacy to their endeavors.

While the SEC has assured us that this move does not imply a preference for approval or denial—because who wouldn’t want to keep us all on the edge of our seats?—they are calling for public comments to better assess whether these proposals meet the lofty standards of investor protection and market integrity outlined in the Exchange Act. Because, of course, we all know how much they care about our well-being. 😏

In their filings, the agency elaborated,

“Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. The institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”

And as if that weren’t enough, the agency has also decided to postpone a decision on Bitwise’s proposal to allow staking in its Ethereum ETF. It seems the SEC is on a roll with these extended timelines, as they sift through an ever-growing pile of crypto-related filings. Who knew regulatory work could be so… leisurely?

ETF Delays Are Routine, Not Surprising

Industry observers, including the ever-astute Bloomberg ETF analyst James Seyffart, have weighed in on the SEC’s latest delay, noting that such extensions are as routine as a British tea time. According to Seyffart, while several XRP-related products have upcoming review dates, early approvals are about as likely as finding a unicorn in your backyard.

He further opined that the securities watchdog typically takes the full allotted time to evaluate 19b-4 filings, making October the more realistic window for final decisions. Any approvals before late June or early July would be considered a shocking deviation from the norm. In his expert opinion, it’s the early action that would truly be a break from standard regulatory procedure. How refreshing! 🥳

And just to add a cherry on top, Seyffart even suggested that the Litecoin ETF has a “higher likelihood” of getting approved first before all the other crypto ETFs. Because why not throw a little more chaos into the mix?

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2025-05-21 19:10