The U.S. Securities and Exchange Commission (SEC) has announced a delay regarding Franklin Templeton’s proposed spot XRP exchange-traded fund (ETF). This postponement marks yet another instance of the regulatory challenges that cryptocurrency-based financial products continue to face in the United States. The SEC’s ongoing concerns over potential market manipulation and the need for robust investor protections have prompted this latest decision.
Franklin Templeton, one of the largest asset management firms globally, with over $1.5 trillion in assets under management, initially filed its application for the spot XRP ETF in February 2025. The proposed fund aims to provide U.S. investors with direct access to XRP, a leading cryptocurrency, through a traditional exchange-traded structure. However, the SEC has decided to postpone its verdict while it meticulously assesses the potential risks associated with introducing such a product into the market.
The SEC’s persistent scrutiny is rooted in a broader apprehension regarding market manipulation and the security of digital assets, particularly in the context of ETF structures. This skepticism is particularly relevant to cryptocurrencies like XRP, which have previously faced swings in volatility and intense regulatory examination. The commission has expressed significant concerns about the risk of manipulation within the digital asset market, especially in an environment characterized by fluctuating prices and liquidity challenges.
This delay follows a recognizable pattern, as the SEC has recently postponed decisions on several other crypto ETF applications. The agency’s insistence on implementing adequate safeguards before confirming any proposals stems from its commitment to ensuring the protection of investors in the increasingly complex crypto landscape.
Despite the regulatory uncertainty over the ETF, XRP has experienced considerable price movement, recently surpassing the $3 mark during a trading session on September 9–10. The rise in XRP’s value has been attributed to growing institutional interest as well as increased regulatory clarity in regions such as Europe. Notably, Ripple’s expansion of its partnership with BBVA, which aligns with the European Union’s Markets in Crypto-Assets (MiCA) regulations, has sparked optimism about the potential for traditional banking institutions to adopt blockchain-based settlement solutions more broadly.
While there are promising signs for XRP, analysts caution that the rising exchange reserves of the cryptocurrency could dampen its momentum. As XRP’s reserves have reached 12-month highs, there may be a distribution pressure that could impede sustained price growth, despite the prevailing bullish outlook in the market.
