SEC’s Crypto Drama: Delays, Dilemmas, and Dogecoin Doldrums!

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Ah, the US Securities and Exchange Commission (SEC), that grand institution of financial oversight, has decided to pump the brakes on four eagerly anticipated crypto-exchange-traded product filings. Yes, folks, they’ve instituted formal proceedings on the spot XRP and Dogecoin ETFs, while also extending their review of an Ethereum staking amendment. Because who doesn’t love a good delay? 🙄

SEC Delays XRP And Dogecoin ETFs

Orders published late on May 20 have designated longer periods for the 21Shares Core XRP Trust (Release No. 34-103080), the Grayscale XRP Trust (34-103090), and the Grayscale Dogecoin Trust (34-103079). Meanwhile, a separate notice (34-103086) has decided to defer action on Bitwise’s proposal to allow staking in its already-delayed Ethereum ETF. Each order invites public comment, making it clear that “institution of proceedings does not indicate that the Commission has reached any conclusions.” Well, that’s reassuring! 😅

Under Section 19(b)(2)(B) of the Exchange Act, the Commission now has up to 240 days from the original filing dates—placing the final deadlines for these products in early October—to approve or disapprove the rule changes. Commenters will have 21 days after Federal Register publication to submit briefs, and 35 days to file rebuttals. The agency claims this extended period is necessary to assess whether the proposed structures are “designed to prevent fraudulent and manipulative acts and practices.” Because, you know, we wouldn’t want any funny business! 😂

Bloomberg Intelligence ETF analyst James Seyffart framed the delay as routine rather than restrictive. “DELAYS on Ether ETF staking for Bitwise and on Grayscale’s XRP ETF filing. Both expected IMO,” he wrote on X, adding that the SEC “typically takes the full time to respond to a 19b-4 filing.” Early approvals, if any, “wouldn’t arrive before late June or early July at the absolute earliest.” When asked whether the Litecoin ETF was likely to remain in limbo as well, Seyffart replied, “Yes, I think that’s most likely, but I also think Litecoin is one that has a higher likelihood vs others of getting approved first.” So, there’s that! 🙃

Nate Geraci, president of The ETF Store, echoed that assessment. “SEC delays several decisions today on spot XRP & doge ETFs, along w/ staking in eth ETFs… Nothing to see here IMO. Still think all will be approved,” he posted via X, cautioning that clarity from the Internal Revenue Service on the tax treatment of staking rewards inside grantor trusts remains an outstanding issue. Geraci had already flagged rising institutional demand the previous day, noting that “CME-traded XRP futures are now live… Spot XRP ETFs only a matter of time.” Fingers crossed! 🤞

CME Group’s launch of standard and micro XRP futures on May 19 gives market participants their first CFTC-regulated venue for leveraged exposure to the token, expanding a crypto derivatives suite that already includes Bitcoin, Ether, and Solana contracts. Early volumes were modest—roughly $1.5 million on debut—but analysts say the reference-rate infrastructure these futures require will be central to any surveillance-sharing agreements the SEC demands for spot products. Because who doesn’t love a little oversight? 😏

Ultimately, the calendar is now clear. Barring an unlikely early approval, the comment cycles will run into mid-summer, pushing any definitive Commission vote on XRP, Dogecoin, or ETH-staking structures into the fourth quarter. “If we’re gonna see early approvals from the SEC on any of these assets — I wouldn’t expect to see them until late June or early July at absolute earliest. More likely to be in early 4Q,” Seyffart writes. So, mark your calendars, folks! 📅

At press time, XRP traded at $2.37. Not too shabby, eh?

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2025-05-21 22:43