SEC Postpones Decisions on Crypto ETF Rule Changes
The U.S. Securities and Exchange Commission (SEC) has delayed making decisions on several proposed changes to the rules governing crypto-based exchange-traded funds (ETFs). The latest deferrals affect applications by major asset managers to allow staking for Ethereum ETFs and to introduce ETFs tracking altcoins such as XRP and Solana.
Applications from Major Asset Managers
On Wednesday, the SEC released filings indicating it needs more time to review whether Ethereum ETFs from BlackRock, Fidelity, and Franklin Templeton can incorporate staking features. Staking would let ETF holders earn rewards by validating transactions through the underlying Ethereum blockchain.
Franklin Templeton also faces delays regarding its proposed spot ETFs intended to track the performance of XRP and Solana. The company applied to list these funds in March, joining a growing list of financial institutions seeking to offer exposure to assets beyond Bitcoin and Ethereum.
Increasing Volume of ETF Applications
The SEC continues to receive new filings for ETFs tied to a range of digital assets. According to data compiled by Bloomberg Intelligence analyst James Seyffart, over 90 crypto ETF applications are currently awaiting regulatory approval in the U.S.
The review of staking proposals accelerated after the SEC's Division of Corporation Finance commented in May that some blockchain activities may not involve securities. This sparked hopes among issuers that staking could be included in future ETF products.
Broader Industry Context
Other major firmsincluding Grayscale, VanEck, Fidelity, Invesco/Galaxy, and Canary Capitalhave joined Bitwise and Franklin Templeton in filing similar proposals for spot Solana ETFs. Decisions on these applications are also pending.
- BlackRock and Fidelity seek staking for Ethereum ETFs
- Franklin Templeton proposes funds for XRP and Solana
- Over 90 crypto ETF filings await SEC decisions
Bitwise's Chief Investment Officer Matt Hougan noted optimism regarding approval of Solana ETFs by the end of the year, reflecting widespread industry anticipation for broader access to altcoin-based funds.
The SEC's cautious approach reflects ongoing regulatory scrutiny as the digital asset sector expands into new financial products. No timeline has been set for final decisions on the pending ETF rule changes.
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