- SEC delays decision on Franklin Templeton’s Spot XRP ETF
- The decision, initially expected in early May, is now postponed to June 17
- The extension is attributed to the need for further analysis
SEC has delayed its decision on Franklin Templeton’s Spot XRP ETF until June 17, citing the need for additional analysis of the proposed rule change for listing on Cboe BZX.
Why Did the SEC Delay the Decision on Franklin Templeton’s Spot XRP ETF?
Why did the SEC delay the decision on Franklin Templeton’s Spot XRP ETF, especially considering it recently approved the first-ever XRP futures ETF launched by ProShares?
Part of the answer lies in the question: Franklin Templeton has filed for a spot XRP ETF, which is a completely different investment product.
Additionally, the SEC provided a fairly specific explanation:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
What does this essentially mean? The SEC intends to take more time to thoroughly analyze the listing application for the XRP ETF, particularly in regard to the proposed rule changes for listing on the Cboe BZX platform. Presumably, the agency will seek to gather additional information, conduct further consultations, and solicit public comments.
Learn more about the Impact of SEC Regulations on Crypto in our comprehensive article!
Conclusion
While this is not exactly positive news for those who were hoping for an imminent approval, it should not be interpreted as negative either. This is a fairly standard regulatory practice of extending review periods under Section 19(b)(2) of the Securities Exchange Act of 1934.
However, it will be important to monitor whether similar extensions occur again regarding Franklin Templeton’s Spot XRP ETF and what additional developments may emerge alongside this process. Be aware and stay tuned for updates on the rapidly reshaping regulatory and crypto landscape.
