SEC extends review of Dogecoin, XRP, and other ETFs until June

The U.S. Securities and Exchange Commission (SEC) has decided to extend its review of several cryptocurrency ETF applications, including Dogecoin, XRP, Solana, and Polkadot, until June, raising new expectations and uncertainty in the sector.

The measure directly affects proposals from asset managers such as Bitwise and Franklin Templeton, who are seeking to list Dogecoin and XRP-based products on major US exchanges.

According to official statements issued by the SEC, the agency needs more time to analyze the complexities of these financial instruments and ensure investor protection in the face of the rapid evolution of digital assets and their constant volatility.

The postponement comes amid growing institutional interest, considering that this year alone, the SEC has received nearly 72 requests of cryptocurrency ETFs, a figure that reflects the industry's boom and the push for greater regulatory clarity.

Analysts anticipate further delays in the coming months, although the arrival of new authorities at the SEC also fuels expectations of a more open approach to crypto innovation. Now, the next key date will be mid-June, when the regulator is expected to rule on the future of these highly anticipated crypto-asset-based financial products.

The extension to review crypto ETF applications

The SEC announced an extension of the deadline to review proposed regulatory changes that would allow a number of crypto ETFs to proceed. These include notable applications such as Grayscale's XRP ETF, the Solana spot ETF filed by Cboe, and other Dogecoin- and Litecoin-related funds. These decisions, originally planned for later, have been postponed until May or June, thus extending a typical period that can include additional reviews of up to 240 days.

Eric Balchunas and James Seyffart, ETF analysts at Bloomberg, have indicated that such postponements are not unusual nor do they necessarily mean a rejection of the funding applications in question. Rather, it is a formal practice the SEC uses to thoroughly evaluate the regulatory, legal, and market implications of new financial products. Such was the case with Bitcoin and Ethereum, whose ETFs took years to receive the green light, following a similarly rigorous consideration process.

For his part, Seyffart reinforced these considerations, recalling that the final deadlines to respond to these new cryptocurrency ETFs are mostly met in October, so it is likely that the agency will not announce a formal decision until that date.

Furthermore, experts have pointed out that these decisions are often influenced by changes in leadership, in this case the recent confirmation of Paul Atkins to chair the SEC, whose swearing-in ceremony took place just days ago. Atkins' arrival represents a shift that could be reflected in a different, and possibly more favorable, approach to crypto innovation.

Paul Atkins' stance on cryptocurrencies

Since last December, approximately 72 applications for cryptocurrency-focused ETFs have been identified, growing in number and diversity. These applications range from established assets like XRP, Solana, Litecoin, and Dogecoin to emerging tokens like PENGU and innovative combinations with integrated staking and derivatives.

Paul Atkins, nominated by President Donald Trump to head the SEC in December and confirmed by the Senate last week, has emerged at hearings as a champion of a clear and consistent regulatory framework for digital assets, with an emphasis on working with Congress to drive innovation while respecting the rules.

Atkins' approach contrasts with Gary Gensler's previous, more stringent stance, raising hopes for an accelerated approval of new crypto ETFs, although the legal protocol and regulatory processes remain rigorous and lengthy.

Institutional adoption of the crypto market

The extension of ETF reviews has significant impacts on several levels. For institutional investors, this delay may cause a pause in the massive incorporation of cryptocurrencies represented through regulated instruments, which facilitate integration into traditional portfolios. The approval of crypto ETFs is seen as a master key that opens the door to large-scale capital and with clear regulations, reducing legal and direct custody risks of digital assets.

In the broader market, regulatory uncertainty is increasing price volatility, which is being observed as the crypto community assesses the impact these postponements may have on projects and tokens awaiting approval to consolidate their legitimacy and growth. For example, ETFs that incorporate mechanisms like staking, like some Ethereum contenders, add value by generating passive income, but they also complicate regulatory evaluation, which is one of the key reasons for the delays in the SEC's decision.

However, analysts also maintain grounded optimism that the federal agency will likely approve several cryptocurrency ETFs over the remainder of the year, with estimated percentages exceeding 65%, depending on the regulatory direction Atkins takes as the new SEC leader.

Dogecoin, XRP, Solana and Polkadot await a response

Among the funds primarily affected by these postponements are funds related to Dogecoin, XRP, Solana, and Polkadot. Seyffart even commented that the SEC could also delay applications for Solana- and Hedera-based funds this week.

Dogecoin and Litecoin are considered to have somewhat clearer regulations, giving them a greater chance of imminent approval, while XRP continues its legal battle against the SEC, with litigation that could be resolved in the coming months and that impacts its regulatory perception.

Solana stands out not only for its technological innovation and adoption in DeFi and NFTs, but also because its spot ETF has generated high expectations, reflected in the markets. Polkadot, on the other hand, has seen additional delays to the Grayscale Polkadot Trust, whose review period now extends until June.

Despite these postponements, investor sentiment toward these digital assets remains strong, as reflected in significant increases in price and activity, pointing to confidence in the eventual positive resolution and consolidation of these assets within the institutional financial ecosystem.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.