The SEC extends its review period for the Franklin XRP ETF by 45 days, underscoring growing regulatory caution toward cryptocurrency ETFs.
The U.S. Securities and Exchange Commission (SEC) has extended the review process for the Franklin XRP ETF, delaying its decision by 45 days as it continues to evaluate the proposed cryptocurrency-based investment product. This latest development in the Franklin XRP ETF saga highlights the ongoing regulatory hesitance around crypto-related financial instruments, despite increasing demand from institutional and retail investors.
On Tuesday, the SEC declared it required more time to evaluate the Cboe BZX Exchange’s plan to list and trade shares of the Franklin XRP Fund, which is meant as a commodity-based trust directly linked to the price of XRP. Originally due on May 3, 2025, the decision has now been pushed until June 17, 2025. The SEC released Cboe BZX’s proposed rule change for public comment on March 19, 2025; it submitted it on March 13. Public comments, though, were absent throughout the first review period.
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Federal law gives the SEC 90 days to act on such proposals—either by approving, refusing, or starting rejection proceedings. The prolongation indicates that although there might be no clear resistance, the agency still has important issues to handle before deciding ultimate verdict.
Delays plague the Franklin XRP ETF, not only. The SEC also delayed its decision on the Bitwise Dogecoin ETF in a different action, moving the deadline to June 15, 2025. Particularly in light of continuing worries about market volatility, investor safety, asset custody, and liquidity methods, these delays show the SEC’s cautious attitude to crypto ETFs.
The introduction of cryptocurrency ETFs, especially those based on altcoins like XRP and Dogecoin, is viewed as a possible game-changer for the sector. Such investment vehicles could make digital assets more accessible to ordinary investors, hence releasing new money flows. Still, more exposure means more regulatory duty as well.
Many industry insiders think that approvals for crypto ETFs—especially high-profile ones like the Franklin XRP ETF—are more probable in the near future given the Trump administration’s return to office and its traditionally more forgiving attitude on financial innovation. Nevertheless, agencies such the SEC keep stressing prudence above expedience.
The creation of a safe and open custody system is one significant obstacle for ETF certification. Digital assets under custodianship offer particular difficulties compared to conventional securities; regulators have to make sure investor money is safeguarded from fraud, hacks, or technical breakdowns. Liquidity is still a major concern as ETFs have to be able to resist notable purchase and sell pressures without changing the market price of the underlying asset.
Market players are still hopeful, despite the present hold-up, that the Franklin XRP ETF may one day be approved. Should it be successful, it would follow in the footsteps of prior approvals for Bitcoin ETFs, which established a precedent for structured crypto investment products in U.S. markets.
These holdups draw attention in the interim to the SEC’s two goals: safeguarding investors and negotiating the rapidly changing digital asset sector. The commission’s choice to lengthen review periods could eventually result in more stable and open crypto marketplaces by allowing more thorough assessments of these products.
Stakeholders in the financial and crypto industries will keenly watch whether the Franklin XRP ETF will signal a turning point in the more general acceptability of cryptocurrency ETFs in the United States as June deadlines draw closer.
