The US Securities and Exchange Commission (SEC) is currently facing significant scrutiny for its delays in making decisions on numerous spot cryptocurrency exchange-traded funds (ETFs), particularly those focused on Ripple’s native token, XRP. Despite changes in the leadership of the agency following the Biden administration’s ascension, the slow pace of ETF approvals has raised questions among industry participants.
In mid-August, the SEC extended deadlines for multiple spot XRP ETF applications, pushing the expected decision dates to October and prompting issuers to revise their submissions. Recently, the regulatory body also postponed Franklin’s ETF filing, moving its deadline from September 17 to November. This trend of delays has been noticed by many in the crypto community, including prominent XRP Army member John Squire, who has over 500,000 followers on social media. Squire’s analysis suggests that the SEC historically delays initial ETF filings to allow for public feedback and thorough internal assessments, a practice observed with past filings for Bitcoin and Ethereum.
Squire pointed out that the SEC appears to be navigating political pressures, especially in an election year. The potential approval of XRP ETFs would signify a recognition of institutional interest in the asset, and the agency seems cautious not to rush this process. Squire indicated that the SEC is seeking clarity on various operational matters, such as custody and surveillance-sharing agreements, before making any decisions.
Importantly, Squire asserted that while the SEC has delayed ETF applications, it has not outright rejected them, which he considers a positive development. Historical precedent shows that the SEC adopted a similar approach with Bitcoin and Ethereum before ultimately approving their ETFs. He confidently stated that Wall Street is keen on gaining exposure to XRP, reinforcing the notion that Ripple ETFs will eventually come to fruition.
Industry experts and betting platforms like Polymarket have echoed Squire’s sentiment, suggesting a high probability of XRP ETFs launching in the US markets this year. Nate Geraci from the ETF Institute has even stated that the likelihood stands close to 100%.
In conclusion, while the SEC’s delays may be frustrating for proponents of XRP, many within the industry see these postponements as part of the regulatory process rather than outright rejections. The overwhelming desire from Wall Street for exposure to XRP suggests that the approval of spot XRP ETFs is all but inevitable.
