SEC Commissioner Says Delays in XRP ETF Reviews Are Procedural, Not Rejection

U.S. SEC Commissioner Caroline A. Crenshaw has addressed the frustration over the slow pace of review for spot-based crypto ETFs, including those tied to XRP. 

Several investors have expressed frustration over the SEC’s repeated delays in deciding the fate of spot ETFs tied to altcoins, such as XRP. In June, the commission delayed its decision on Franklin Templeton’s spot XRP ETF application, just as it had done for several XRP ETF filings in previous months. 

Reason Behind Delays  

Speaking in a recent interview on The David Lin Report (TDLR), Commissioner Caroline commented on the SEC’s repeated delays in approving XRP ETFs, highlighting the decision-making process. 

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Caroline said she expected the frustration from investors, stating that she had warned them about it right from the beginning. While acknowledging the growing complaints, Commissioner Caroline emphasized that the SEC, as a bureaucracy, adheres to specific rules in its processes. 

This procedure ensures that the SEC moves deliberately, not quickly, which eventually delays the review of applications, as evidenced in the XRP ETF filings. Nonetheless, the commissioner confirmed that the SEC is still reviewing multiple altcoin ETF filings, as well as other exchange-traded product (ETP) applications. 

“[…] So we are working through. We have gotten a lot of applications on the exchange-traded product side. And so we’re working through those,” she remarked.

Despite the growing complaints, Caroline suggested that the SEC would stick to its established review process for the multiple applications for altcoin ETFs. She stressed that this extensive review will “definitely frustrate people.” 

SEC Is Not Ruling Out Spot XRP ETF Launch 

However, the commissioner clarified that the SEC is not ruling out the potential launch of XRP ETFs despite the delays. 

“When you see delays, you should not assume that [the SEC is] ruling it out,” she said. Delaying decisions on financial products is part of the SEC’s review process, ensuring ample time for thorough evaluation. 

Potential Deadline for XRP ETF Launch 

For context, more than 10 prospective issuers, including Franklin Templeton and Bitwise, are seeking to launch spot XRP ETFs in the United States.

So far, the SEC has already missed the first two decision deadlines for these products. The third deadline for some of these products is scheduled for August, while the fourth and final deadline is in October. 

Several experts, like Bloomberg ETF analysts Eric Balchunas and James Seyffart, believe the SEC will approve these spot XRP ETF applications by October.

Although the SEC has yet to approve any spot XRP ETF applications, the commission has given tacit approval for the launch of multiple futures XRP ETFs, like Teucrium 2x Long Daily XRP ETF.