SEC Delays Approval of Cryptocurrency ETFs: What’s Next?

SEC Delays Approval of Cryptocurrency ETFs: What’s Next?

The Securities and Exchange Commission’s (SEC) decision to delay approval of cryptocurrency exchange-traded funds (ETFs) continues to stir up heated debate in the industry. The affected coins include Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), XRP, Cardano (ADA), and Hedera Hashgraph (HBAR). The delay comes amid requests from major companies, including VanEck, Canary, 21Shares, WisdomTree, and Grayscale.

The SEC justified its decision by saying it needed to conduct a more thorough analysis of the risks associated with these digital assets. Officials say they need to assess the impact on traditional financial markets, as well as investor protections. As a result, each ETF remains on hold, with the possibility of approval, rejection, or further delays in the future.

• Which ETFs Are Affected?

The SEC has temporarily blocked a number of ETFs proposed by financial giants, as follows:

CoinShares: ETFs for Litecoin and XRP.

Grayscale: Awaiting approval for dedicated funds for Solana, Dogecoin, Hedera Hashgraph, XRP, Cardano and Litecoin.

Bitwise: Still in the process for Solana, XRP and Dogecoin ETFs.

21Shares: Facing hurdles with Solana, XRP and Ethereum ETFs.

Canary: Proposals for Litecoin, XRP and Solana still under review.

VanEck: Facing delay on Solana ETF.

WisdomTree: Still waiting for a response on XRP ETF.

BlackRock: Approval process for Bitcoin ETF remains on hold.

Fidelity: Delays for Bitcoin and Ethereum ETFs.

There is speculation that approval of these funds could hinge on the appointment of Paul Atkins as SEC chairman under the Donald Trump administration. Atkins, a proponent of deregulation and free markets, could change the SEC’s approach to cryptocurrency-based financial products.

It remains to be seen whether and when the SEC will make a favorable decision on these investment vehicles – there is still hope for a greater openness of traditional financial markets to cryptocurrencies.