SEC Delays Decision on Franklin Templeton’s Spot XRP ETF Until June 17

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.

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Franklin Templeton’s proposed spot XRP ETF until June 17, citing a 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?

“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.”

Part of the answer lies in the fact that Franklin Templeton has filed for a spot XRP ETF, which is a different investment product from the XRP futures ETF, recently approved by the SEC and launched by ProShares.

The SEC explained that it will take more time to analyze the listing application for the XRP ETF, especially in regard to the proposed rule changes for listing on the Cboe BZX platform. Presumably, the agency will seek to gather more information, conduct further consultations, and solicit public comments.

This is not exactly positive news for those who were hoping for an imminent approval, but it should not be viewed negatively either. It is a standard regulatory practice to extend review periods under Section 19(b)(2) of the Securities Exchange Act of 1934.

However, it will be important to see if similar extensions occur again and what additional developments emerge alongside this process. Stay tuned for updates on the rapidly reshaping regulatory and crypto landscape.