The U.S. Securities and Exchange Commission is expected to delay its decision on spot cryptocurrency exchange-traded funds linked to XRP. According to Bloomberg ETF analyst James Seyffart, the likelihood of approval in the coming days remains low despite multiple filings nearing key deadlines.
In a recent post on X, Seyffart stated that although XRP ETP deadlines are approaching, the SEC is not likely to act until late June or early July. He added that a more realistic timeline for a final decision could be sometime in the fourth quarter of this year.
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This delay is raising concerns within the crypto industry, which had anticipated a more decisive stance following the approval of Bitcoin and Ethereum ETFs last year. The delay has caused many to question the SEC’s thoughts on introducing new crypto-based products.
Demand for spot crypto ETFs is high, but being slow to act or cautious keeps the industry from moving ahead in regulations. Through this, investors can benefit from cryptocurrencies without owning them, which makes them appealing in traditional finance.
Growing Concerns Over Regulatory Intentions
Industry leaders had viewed the pending XRP ETF applications as a key moment for proving the market’s readiness for broader integration. Many expected faster movement from the SEC as a sign of maturity and regulatory acceptance.
As a result, the many delays have made people question when the United States financial system will accept alternative crypto assets. The extended timeline might reflect that the SEC is still not convinced about the protection systems and supervision of these digital products.
Many other cryptocurrency ETFs, aside from XRP, are experiencing delays despite people wanting more information and clear guidelines. Market participants are now adjusting expectations, shifting focus toward late 2024 for potential approval.
The longer the SEC takes to solve its issues with XRP, the slower XRP’s journey to mainstream acceptance will be. When deadlines are pushed back, industry leaders begin to worry about major obstacles from regulators.
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