SEC Extends Review for Franklin’s XRP ETF Proposal

The delay in Franklin Templeton’s XRP ETF approval indicates increased scrutiny of crypto-related investments amid leadership changes at the SEC.

The SEC extended its decision deadline for Franklin Templeton’s proposed spot XRP ETF to June 2025. This extension represents the SEC’s meticulous approach in reviewing cryptocurrency investment proposals to address regulatory concerns adequately.

Franklin Templeton, managing over $1.5 trillion in assets, submitted its ETF application, highlighting the growing interest among top financial institutions in digital currencies. This move follows Paul Atkins’ recent appointment as SEC Chair, potentially impacting crypto ETF evaluations.

Paul Atkins, SEC Chair, U.S. Securities and Exchange Commission, said, “The Commission finds it appropriate to designate a longer period within which to take action… so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

Institutional interest in XRP remains robust, with Franklin Templeton’s proposal alongside other prominent asset managers. The SEC’s decision delay is typical of its prolonged review periods for crypto-related products to ensure comprehensive assessment.

Investors anticipate broader implications for market access to XRP if the ETF is approved. The SEC’s cautious stance reflects ongoing regulatory challenges in classifying XRP’s investment status and could influence future market strategies.

ProShares’ futures-based XRP ETF launch indicates a bend toward indirect crypto investments similar to Bitcoin’s path. This trend underscores potential regulatory and market adaptation to emerging digital financial products.

The regulatory environment poses challenges but also opportunities for new digital asset financial instruments. Historical trends suggest a possible gradual acceptance similar to Bitcoin ETFs. Thus, Franklin Templeton’s efforts signify broader digital investment adaptation amid cautious but evolving regulatory landscapes.