SEC Stalls Grayscale’s XRP ETF Decision, Adding to Regulatory Uncertainty

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on Grayscale’s application to convert its XRP Trust into a spot exchange-traded fund (ETF).

The regulator cited the need for additional evaluation time before determining the next steps regarding the proposed rule change.

Grayscale initially filed for the XRP ETF conversion in late January, with the SEC formally acknowledging the filing in mid-February—marking the first XRP ETF proposal to receive official recognition from the agency.

With this latest delay, analysts anticipate a similar approach for other pending XRP ETF applications, including those from Canary Capital and 21Shares.

More Crypto ETF Delays Stir Market Reaction

In addition to the XRP ETF delay, the SEC also postponed decisions on Grayscale’s Dogecoin ETF and Canary Capital’s Litecoin ETF earlier today. The move reflects the agency’s ongoing cautious stance toward cryptocurrency ETFs outside of Bitcoin and Ethereum.

Despite the SEC’s approval of spot Bitcoin and Ethereum ETFs, alternative crypto ETFs continue to face regulatory setbacks. The delays highlight ongoing scrutiny over the potential risks associated with crypto-based investment products.

XRP ETF Race Heats Up Amid Regulatory Uncertainty

Facing increasing competition, Franklin Templeton has officially entered the race to launch an XRP ETF, submitting an application that could intensify the battle among firms seeking regulatory approval. While Grayscale remains a leader in crypto asset management, major financial institutions like Fidelity and BlackRock have yet to file for an XRP ETF.

BlackRock has previously stated that it has no immediate plans to create ETFs for cryptocurrencies beyond Bitcoin and Ethereum, leaving uncertainty over whether XRP will eventually gain traction among institutional investors.

With the SEC extending its decision-making period, market participants are left speculating about future regulatory moves. Analysts warn that further delays could negatively impact investor sentiment and hinder crypto ETF adoption in the U.S.

XRP Price Reacts to SEC Postponement

Following the announcement, XRP’s price initially dropped 1.2% in response to heightened uncertainty. However, a swift rebound saw the token climb to $2.22, marking a 4.87% gain within 24 hours, according to CoinMarketCap.

Historically, major regulatory decisions have significantly influenced XRP’s price action. While delays often trigger sell-offs, institutional involvement, and positive developments tend to drive rallies.

With no clear timeline for an SEC verdict, market volatility is expected to persist. Whether the delay signals a future approval or another prolonged regulatory battle remains to be seen.