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The United States Securities and Exchange Commission (SEC) has once again postponed decisions on several spot cryptocurrency Exchange Traded Funds (ETFs), including a significant number that aim to track the performance of Ripple's native token, XRP. These repeated delays have sparked considerable discussion within the XRP community, with members offering various perspectives on the SEC's cautious approach.
Key Takeaways
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The SEC has extended deadlines for multiple spot XRP ETF applications.
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A prominent XRP community member suggests these delays are standard procedure and not indicative of rejection.
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Political pressure and the need for regulatory clarity on custody and settlement are cited as potential reasons.
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Experts and betting platforms indicate a high probability of eventual approval.
SEC's Pattern of Delays
The SEC initiated a series of postponements in mid-August, pushing deadlines for numerous spot XRP ETF applications to October. This move prompted issuers to revise their submissions. The delays continued, with the SEC extending the deadline for Franklin Templeton's filing to November, moving it from its original September date.
John Squire, a well-known figure in the XRP community with a substantial following on X, has analyzed these postponements, particularly concerning the Franklin ETF. He pointed out that the SEC typically delays initial ETF filings, a pattern observed with Bitcoin and Ethereum ETFs before their eventual approvals. Squire believes these delays allow the agency more time for public commentary and thorough internal reviews.
Political Pressure and Regulatory Clarity
Squire also suggested that political pressure might be a factor. He posited that approving XRP ETFs would signify institutional demand for the asset, which could be a sensitive issue in a politically charged year. According to Squire, the SEC is deliberately taking its time to avoid appearing to move too quickly.
Furthermore, he highlighted the SEC's desire for comprehensive clarity on crucial aspects such as custody arrangements, settlement processes, and surveillance-sharing agreements. The agency aims to ensure all regulatory requirements are meticulously met before granting approval.
Delays as a Positive Sign
Despite the repeated postponements, Squire emphasized that the SEC has not rejected any applications. He views this as a positive indicator, drawing parallels to the approval processes for Bitcoin and Ethereum ETFs, which also experienced similar delays before receiving the green light in 2024.
Squire concluded that there is significant interest from Wall Street in gaining exposure to XRP, making the approval of spot XRP ETFs an inevitable outcome. This sentiment is echoed by ETF experts and betting platforms like Polymarket, with Nate Geraci of the ETF Institute estimating the chances of XRP ETFs reaching US markets this year to be close to 100%.
Sources
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Why Do Ripple ETFs Face Constant Delays? XRP Army Weighs In, CryptoPotato.
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