SEC Decision: XRP ETF Delay for Franklin Templeton

Sec Postpones Decision On Xrp ETF: Franklin Templeton Must Wait

30 April 2025 at 09: 24

Reading time: 2 minutes

Bad news for fans of XRP in the US: The US Securities and Exchange Commission (SEC) has just postponed the decision on the Franklin XRP Trust, a spot XRP ETF, until June 17, 2025. This was announced in an official notice on their website. Is this a setback for XRP’s rise, or is it just a matter of time?

Postponed until June: What's going on?

Former Fox Business journalist Eleanor Terrett was the first to share the news via X: “BREAKING: SEC delays decision on Franklin Templeton’s XRP spot ETF to June 17.” She shared a screenshot of the SEC’s official document, in which the regulator explains why the additional time is needed. The SEC stated that the extension is necessary to “fully study the complex issues” surrounding the proposed rule change.

The ETF’s application was filed on March 11, 2025, by the Cboe BZX Exchange and published in the Federal Register for public feedback on March 19. Normally, the SEC has 45 days after publication to respond – a deadline that would otherwise have expired on May 3, 2025. However, under the Securities Exchange Act of 1934, the SEC has the ability to extend that period by up to 90 days. And now they’re doing just that. Notably, no one has yet filed written comments, which makes the situation even more interesting.

What is the reason for this delay?

The SEC remains fairly cautious. Their statement reads, “We need additional time to thoroughly evaluate the proposed rule change and the issues involved.” That’s not a yes or no, but it does indicate that the SEC is taking the matter seriously. XRP’s regulatory history—particularly the years-long legal battle with Ripple—makes this ETF application particularly sensitive. The SEC doesn’t want to rush into any decisions, especially now that crypto ETFs like the one from Bitcoin becoming increasingly common.

A milestone for XRP?

The Franklin XRP Trust is one of the first serious attempts to launch a spot XRP ETF in the US market. If approved, this ETF would be a huge step for the integration of XRP into traditional financial products. The fund would fall under BZX Rule 14.11(e)(4), which provides regulations for commodity-based trust shares. For US investors, this would mean direct exposure to the value of XRP without having to manage crypto wallets themselves. That’s a major development!

Still, XRP remains a controversial topic. While Bitcoin ETFs have been welcomed with open arms in recent years, XRP has come under intense scrutiny amid questions about the token’s legal status. The SEC appears to be extra cautious, and this delay highlights that.

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