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In a decision that reverberated across the digital asset space, the U.S. Securities and Exchange Commission (SEC) has once again chosen caution over speed, postponing its ruling on Franklin Templeton’s spot XRP ETF until June 17, 2025. 

While market participants may be experiencing déjà vu, this move aligns with the SEC’s increasingly familiar regulatory rhythm when it comes to cryptocurrency-based investment products.

But is this merely bureaucratic prudence, or a sign of deeper tension between crypto innovation and institutional acceptance?

Another Procedural Delay — A Familiar Strategy from the SEC

Filed through the Cboe BZX Exchange and formally published in the Federal Register on March 19, the Franklin XRP Fund was initially slated for a verdict by May 3, 2025. However, citing the need for “a longer period” to consider the proposed rule change, the SEC extended its timeline — a decision that has now become patterned behavior across the digital asset ETF landscape.

Such procedural delays are legally permissible under SEC guidelines. ETF applications are subject to a maximum review period of 240 days, segmented into multiple deadlines, during which the SEC may approve, deny, or extend its review. In the case of XRP, this extension still leaves the door open for potential approval in June — assuming no further delays are exercised.

According to James Seyffart, ETF analyst at Bloomberg Intelligence, these delays do not necessarily imply a rejection. “This is par for the course,” Seyffart explained in a recent statement. “The SEC routinely extends its review timeline, particularly on crypto ETFs. It’s not a no — it’s part of their internal process.”

Read Also: XRP Eyes 55% Rally as ProShares ETF Approval Accelerates Momentum

XRP Price Stumbles as Uncertainty Looms

Despite the procedural nature of the delay, markets responded swiftly and sharply. XRP’s price tumbled below $2.30, registering a 3% decline within hours of the SEC’s announcement. At press time, XRP was trading around $2.24, still maintaining a 7% gain over the previous week.

The muted drop suggests that while investors were disappointed, they weren’t surprised. The volatility reflects market sensitivity to regulatory momentum, where perception can move price faster than fundamentals.

“Investors are learning to read the SEC’s behavior,” said Ritu Bhatt, a digital asset analyst at ArcPoint Strategies. “A delay is no longer panic-inducing — but it’s still a psychological hurdle for short-term speculators.”

Read Also: Proshares XRP ETF News: Here Are Some Details for the Ripple Community

Franklin Templeton’s Ambitious Play: Why XRP? Why Now?

With $1.5 trillion in assets under management, Franklin Templeton is not an unknown player dabbling in crypto — it's a heavyweight staking serious capital on blockchain’s future. Its pursuit of an XRP ETF is a strategic expansion of its digital asset strategy, which already includes tokenized treasury products and blockchain-native asset management platforms.

But why XRP, a token often mired in regulatory ambiguity?

XRP’s unique position — fast, scalable, and increasingly viewed as enterprise-grade infrastructure for cross-border payments — gives it a competitive edge in the altcoin ETF race. Franklin Templeton’s move signals confidence that the regulatory climate around XRP is thawing, especially after Ripple’s partial legal victories in its ongoing battle with the SEC.

“If approved, this ETF will offer exposure to a digital asset that is fundamentally different from Bitcoin or Ethereum,” noted Emma Chiang, lead strategist at CryptoBench. “It’s about transaction utility, not just value storage.”

Read Also: Brazil Launches First XRP ETF! Ripple's Adoption Becomes More Prominent

Altcoin ETF Landscape: XRP, ETH, DOGE, SOL — Who’s Next?

Franklin’s XRP filing is just one piece of a broader ETF puzzle forming at the SEC’s doorstep. The agency has also delayed rulings on:

• Fidelity’s Spot Ethereum ETF (which includes a staking component),

• Bitwise’s Dogecoin ETF, and

• Franklin Templeton’s own Solana ETF.

Each of these applications brings with it unique regulatory challenges — staking, meme volatility, smart contract risk — and together they illustrate the SEC’s increasingly crowded ETF pipeline.

For the SEC, the concern isn’t just investor protection anymore. It’s jurisdiction, oversight, custody infrastructure, market manipulation risks, and how to harmonize these assets with legacy financial regulation.

Eric Balchunas, Bloomberg’s Chief ETF Analyst, emphasized that even Bitcoin and Ethereum ETFs faced identical delays before winning approval. “The timing mirrors what we saw in 2023–2024,” he noted. “It’s a rinse-repeat cycle with the SEC. But ultimately, these products got through.”

Read Also: XRP to See More Bullish Movement! Recent Positive Movement Supports Hypothesis

Institutional Appetite Remains Strong

Behind the scenes, institutional demand for altcoin ETFs is not just growing — it’s accelerating. Asset managers like Grayscale, WisdomTree, VanEck, 21Shares, and Bitwise are all betting on a multi-chain future where ETFs track more than just Bitcoin and Ethereum.

Franklin’s XRP ETF is especially important because it represents a diversification of crypto exposure for institutional portfolios. If approved, it would become the first major altcoin ETF focused on utility rather than hype, potentially redefining how digital assets are positioned within traditional finance.

Read Also: Ripple Cancels 2025 IPO Plans! Is This True?

Regulatory Overhang: A Battle of Legacies and Futures

Despite all the momentum, the elephant in the room remains the SEC’s historic antagonism toward Ripple Labs and XRP. The lawsuit — while partially resolved — still casts a long shadow. Even though XRP was deemed not a security in certain contexts, the lack of a definitive legal classification continues to complicate its pathway to regulatory approval.

Analysts speculate that the SEC’s current hesitancy may be an attempt to avoid setting a binding precedent. Approving an XRP ETF could be interpreted as an implicit endorsement of XRP’s non-security status — something the Commission may be reluctant to do outright.

What’s Next? Looking Beyond June

The next official milestone in this saga is June 17, 2025 — but that may not be the final word. The SEC has historically taken ETF reviews right up to their final deadline.

Market participants should be prepared for further delays, nuanced rulings, or conditional approvals. Much will depend on regulatory clarity, legal developments, and broader macro sentiment toward digital assets.

Still, one thing is clear: the crypto ETF ecosystem is evolving, and XRP is no longer on the sidelines.

Read Also: CME Group to Launch XRP Futures Next Month! Here are the Details

Conclusion

The SEC’s decision to delay Franklin Templeton’s XRP ETF filing is not unexpected, but it’s far from inconsequential. It reflects the continued tension between crypto innovation and regulatory control, a dynamic that is shaping the future of finance in real time.

As June approaches, stakeholders — from institutional investors to retail traders — will be watching for any signal from the SEC that the tide is finally turning for XRP.

In the end, this delay is just another act in an unfolding regulatory drama. The curtain hasn’t fallen — but the spotlight is burning brighter than ever.

Read Also: XRP Pool for New Users on Bitrue: Earn Rewards Now

FAQ

Q: Why did the SEC delay the Franklin Templeton XRP ETF decision?
A: The SEC extended the review period to June 17, 2025, citing the need for additional time to consider the proposed rule change and regulatory implications. This is part of a standard review process applied to most crypto ETFs and does not indicate a rejection.

Q: Is this delay unique to XRP, or are other crypto ETFs also affected?
A: No, this is not unique to XRP. On the same day, the SEC also postponed decisions on several other altcoin ETFs, including Fidelity’s Ethereum ETF (with staking), Bitwise’s Dogecoin ETF, and Franklin Templeton’s Solana ETF.

Q: Does the delay mean the SEC is likely to reject the XRP ETF?
A: Not necessarily. According to analysts from Bloomberg and other research firms, such delays are procedural and often precede eventual approvals. Both Bitcoin and Ethereum ETFs faced similar extensions before receiving the green light.

Q: How did the XRP price react to the delay?
A: XRP fell by approximately 3%, dropping below $2.30 shortly after the announcement. However, it remains up 7% over the past week, suggesting that markets are factoring in the delay as temporary and not a deal-breaker.

Q: Why is Franklin Templeton pursuing an XRP ETF?
A: Franklin Templeton, with over $1.5 trillion AUM, sees XRP as a unique digital asset with strong utility in cross-border payments. The ETF would offer institutional investors diversified exposure beyond Bitcoin and Ethereum.

Q: What happens on June 17, 2025?
A: That’s the next key decision deadline. The SEC must either approve, deny, or extend the ruling again. While it’s possible for further delay, this date is seen as a critical milestone for XRP’s path toward ETF approval.

Q: Could an XRP ETF approval influence broader altcoin regulation?
A: Yes. An approval would likely be interpreted as a regulatory endorsement of XRP’s legitimacy, potentially accelerating institutional adoption and influencing how other altcoin ETFs are evaluated by the SEC.

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