TLDR
- SEC has postponed decisions on several crypto ETF applications, including BlackRock and Franklin Templeton proposals
- BlackRock’s Ethereum staking amendment decision is now set for October 30
- Franklin Templeton’s Ethereum staking, Solana, and XRP ETF decisions are delayed until mid-November
- SEC Chair Paul Atkins launched “Project Crypto” to modernize securities rules for digital assets
- The commission is evaluating at least 92 crypto-linked ETF proposals
The U.S. Securities and Exchange Commission (SEC) has delayed decisions on multiple cryptocurrency exchange-traded fund (ETF) applications, extending review periods for major financial institutions including BlackRock and Franklin Templeton. The delays affect various digital assets including Ethereum, Solana, and XRP, as well as proposals related to Ethereum staking.
According to SEC filings, the commission has set a new deadline of November 13 for Franklin Templeton’s Ethereum staking amendment. The company’s Solana and XRP ETFs will be reviewed until November 14. BlackRock’s iShares Ethereum Trust staking proposal now faces an October 30 deadline.
The SEC has not indicated how it might rule on these applications. The filings only state that additional time is needed for evaluation. The commission is utilizing the maximum extension period available before making final decisions on these proposals.
Franklin Templeton submitted its proposals for Ethereum, Solana, and XRP products with Cboe BZX in mid-March. Nasdaq filed BlackRock’s iShares Ethereum staking amendment on July 16.
Regulatory Timeline for ETF Approvals
The SEC operates under specific timeframes when reviewing ETF applications. Under Section 19(b) of the Securities Exchange Act, the commission has up to 45 days from publication to act on proposed rule changes. This period can be extended to 90 or 180 days, with some cases allowing an additional 60-day extension.
This latest round of delays adds to a growing list of postponed decisions on crypto ETF applications. On Tuesday, the federal agency delayed rulings on the Bitwise Dogecoin ETF and the Grayscale Hedera ETF, extending both reviews until November 12.
In August, the SEC issued numerous extensions on pending crypto ETF applications. These included NYSE Arca’s filings for the Truth Social Bitcoin and Ethereum ETF (now due October 8), as well as the 21Shares and Bitwise Solana ETFs (pushed to October 16). The 21Shares Core XRP Trust decision was delayed until October 19.
The commission also extended the review period for Cboe BZX’s proposal to list the WisdomTree XRP Fund, with a new deadline of October 24. The Canary PENGU ETF decision was moved to October 12.
Growing Interest in Crypto ETFs
The delays come amid increasing interest in cryptocurrency ETFs from major financial institutions. According to reports, the SEC had at least 92 crypto-linked ETF proposals under review as of late August.
The regulatory landscape for cryptocurrencies has shifted since President Donald Trump took office in January. On July 31, SEC Chair Paul Atkins unveiled “Project Crypto,” a commission-wide initiative aimed at modernizing securities rules and creating a unified framework for digital asset trading, lending, and staking.
At an Organisation for Economic Co-operation and Development (OECD) Roundtable in Paris, Atkins emphasized this change in direction, stating, “Crypto’s time has come.”
The SEC has already clarified that staking activities aren’t classified as securities, suggesting a possible path to approval for staking-related ETF applications. This clarification is particularly relevant for the pending Ethereum ETF staking decisions.
There’s speculation that the SEC might approve staking for multiple Ethereum ETFs simultaneously. If this occurs, approval could come as early as October 23, when the first deadline (for 21Shares Ethereum ETF) arrives.
The REX-Osprey’s Solana ETF, which is the first SOL ETF, already includes staking functionality. This precedent may influence decisions on pending applications.
Ethereum prices have recorded gains in recent months, partly due to anticipation surrounding the potential inclusion of staking in ETFs. The outcome of these regulatory decisions could have implications for cryptocurrency market valuations and institutional adoption.
The final deadline for the SEC to decide on Grayscale’s ETH ETF staking proposal is October 29, just one day before the BlackRock decision deadline.
The SEC continues to evaluate these proposals as part of its broader assessment of how to regulate digital asset investment products within existing securities frameworks.
