SEC’s Never-Ending Game of Delay: Will They Ever Decide? 🤔

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In the grand theater of finance, where the actors are cloaked in the garb of regulatory authority, the United States Securities and Exchange Commission has once again chosen to delay its verdict on the application of Bitwise. This application, which seeks to introduce staking to its Ether exchange-traded fund, along with the bid for Grayscale’s XRP ETF, has been met with the expected sighs of resignation from analysts who have come to know the SEC’s penchant for procrastination.

On the 20th of May, the SEC, in its infinite wisdom, declared that it required an additional 45 days to ponder the proposed rule change and the myriad issues that have been raised. One might wonder if they are deliberating over the fate of nations or merely deciding whether to allow a new flavor of ice cream. The deadline for a decision looms ominously on May 22, like a dark cloud over a picnic.

Moreover, the agency has also postponed its judgment on Grayscale’s XRP tracking ETF and Bitwise’s Solana tracking fund, as it seeks the opinions of the public and embarks on “proceedings to allow for additional analysis.” One can only imagine the SEC’s conference room, filled with solemn faces, as they engage in deep discussions about the regulatory standards that must be met. Perhaps they are debating the merits of a good cup of coffee instead.

James Seyffart, a sage of the Bloomberg ETF realm, remarked on X that such delays were, in fact, anticipated. The SEC, he noted, typically takes the full time allotted to respond to a 19b-4 filing. It seems that the clock is not merely a tool for measuring time but a companion in the SEC’s leisurely stroll through the regulatory landscape.

“Almost all of these filings have final due dates in October,” Seyffart added, as if to say that an early decision would be akin to a cat chasing its own tail—entertaining but ultimately futile. “No matter how Crypto-friendly this SEC is, there’s no conspiracy here,” he quipped, perhaps with a hint of sarcasm that would make even the most stoic observer crack a smile.

SEC Delays

As Seyffart continued, he predicted further delays on other spot crypto ETF bids, including those for Litecoin. Yet, he offered a glimmer of hope, stating that Litecoin might just have a better chance of approval than its counterparts. It’s as if he were saying, “If we’re going to see early approvals from the SEC, don’t hold your breath—unless you enjoy turning blue.”

“A bunch of XRP ETPs have dates in the next few days,” he noted, “but if we’re going to see any early approvals, I wouldn’t expect them until late June or early July at the earliest. More likely, we’re looking at early Q4.” The anticipation hangs in the air, thick as a fog on a winter’s morning.

SEC grapples with a deluge of ETF filings

As the SEC navigates this sea of applications, several other crypto ETF proposals are approaching their deadlines in June. The agency is expected to render a decision on Grayscale’s Polkadot tracking ETF by June 11 and 21Shares’ Polkadot ETF by June 24, according to their own filings. It’s a race against time, but one that seems to be run at a leisurely pace.

In the wake of Donald Trump’s election in November, the SEC was inundated with a wave of altcoin ETF filings, a veritable flood that followed the resignation of former SEC Chair Gary Gensler. His tenure was marked by a regulatory fervor that could only be described as aggressive, with a staggering 100 crypto-related regulatory actions during his time in office.

With Gensler’s departure, the SEC is now perceived as more crypto-friendly, as several firms that once faced the wrath of the regulator have seen their cases dismissed. The likes of crypto exchange Gemini and trading firm Cumberland DRW have emerged from the shadows, perhaps with a newfound sense of optimism.

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2025-05-21 09:30