Ripple’s XRP Explosive Rocket Hangs On As SEC Delays Decision On Spot DOGE And XRP ETFs

The U.S. Securities and Exchange Commission has delayed deciding whether to allow the trading of altcoin spot ETFs, which give investors exposure to Dogecoin (DOGE) and Ripple-affiliated XRP.

Wall Street’s biggest regulator said in Tuesday filings that it had extended its review period for the 21Shares Core XRP Trust, the Grayscale XRP Trust, and the Grayscale Dogecoin Trust.

The SEC suspended the original May 21-22 decision deadlines to further examine whether the proposals satisfy Exchange Act Section 6(b)(5) requirements for preventing fraud and protecting investors.

Cboe and NYSE, where the 21Shares and Grayscale funds would be listed, respectively, submitted their requests for rule changes earlier this year. The 21Shares Core XRP Trust plans to track the CME CF XRP-Dollar Reference Rate, with Coinbase Custody providing storage for the assets. Grayscale’s Dogecoin Trust would track CoinDesk’s Dogecoin Price Index, while its XRP Trust would follow CoinDesk’s XRP Price Index.

Dogecoin is the world’s oldest and largest memecoin, with a market capitalization of around $33.7 billion as of May 21, according to data from CoinGecko. XRP is the native token of the XRP Ledger blockchain network. It has a market capitalization of approximately $138 billion, CoinGecko data shows.

“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change,” the SEC wrote.

Delays Are Expected

The SEC has postponed decisions on a bevy of crypto ETF proposals in recent months as it mulls dozens of proposals, despite the Commission under the Trump administration adopting a friendlier approach to digital assets. Since Trump returned to the White House in January, the SEC has dismissed several enforcement cases against crypto firms, and the commission’s crypto task force has met with reps of several companies in recent months as part of efforts to explore potential changes to digital asset regulation. 

According to Bloomberg Intelligence ETF analyst James Seyffart, SEC delays on spot crypto ETFs are to be expected.

“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 the absolute earliest. More likely to be in early Q4,” Seyffart wrote in a May 20 post on X.

Seyffart pointed out that the SEC usually takes advantage of the full time allotted to respond, no matter who is in charge at the SEC.

“Almost all of these filings have final due dates in October. Early decisions would the action that’s out of the norm. No matter how ‘Crypto-friendly’ this SEC is. There’s no conspiracy here. lol,” Seyffart opined.