The U.S. Securities and Exchange Commission (SEC) announced on Tuesday it will defer a decision on whether to approve the listing of Franklin Templeton's proposed exchange-traded fund (ETF) tied to XRP, extending the review period by 45 days. The new deadline is set for June 17, 2025, moving the previous May 3 cutoff.
Regulatory Process Under Scrutiny
Cboe BZX Exchange initially submitted the proposed rule change on March 13, seeking to list the Franklin XRP Fund under commodity trust share guidelines. The SEC published the filing for public comment on March 19 but received no feedback during the review period. Under federal law, the regulator has up to 90 days to approve, deny, or initiate proceedings to reject such proposals.
The SEC cited the need for additional time to evaluate the filing, a standard rationale that often signals deeper reservations about market stability and investor protections. In a parallel move, the SEC also extended its review of Bitwise Asset Management's application to launch a Dogecoin ETF, delaying that decision to June 15.
Implications for Crypto ETFs
Both extensions reflect the agency's cautious approach to cryptocurrency-based financial instruments amid evolving market risks. SEC officials have not elaborated on specific concerns but noted the extensions ensure “sufficient time to consider the proposed rule changes.” Many believe, however, with the Trump administration in office, these types of funds will eventually be approved. The delays could also involve technical evaluations of custody and liquidity frameworks for altcoin ETFs.
Franklin Templeton, one of the world's largest asset managers, entered the XRP ETF race as a signal of institutional interest in digital assets beyond Bitcoin and Ethereum. XRP, the native token of the Ripple network, has faced legal uncertainty after the SEC's lawsuit against Ripple, but a 2023 court ruling that certain XRP sales were not securities cleared a path for such products. The industry now watches for the SEC's final decision in June, which may set a precedent for altcoin ETF approvals.