The US Securities and Exchange Commission (SEC) has put the brakes on deciding the fate of multiple spot crypto ETF applications, including those for XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). The delay is expected to continue until Paul Atkins, President Trump's nominee for SEC Chair, is confirmed by Congress.
Delayed Decisions
Bloomberg ETF analyst James Seyffart believes the SEC will push back approvals for crypto ETFs until Atkins is officially sworn in. "It's been our assumption that anything that can be pushed until Atkins is officially at the SEC, will be pushed back," he stated.
Timeline Uncertainty
Historically, the SEC has taken up to 240 days to approve or reject ETF applications. Some pending applications are up for review in May and June, but final decisions will likely depend on Atkins' confirmation timeline.
Approval Odds
Despite the delays, analysts estimate a 65% or higher chance that some spot crypto ETFs will be approved by late 2025. However, the timeline remains uncertain, hinging on regulatory clarity and leadership changes at the SEC.
Impact on Crypto Market
The delay in approving crypto ETFs may impact the growth of the crypto market, as investors await clearer regulatory guidance. However, the eventual approval of these ETFs could pave the way for increased institutional investment in cryptocurrencies.
Conclusion
The delay in approving crypto ETFs is a temporary setback for the crypto industry. Once the new SEC chair takes office, we can expect clearer guidance on crypto regulations, potentially paving the way for the approval of spot crypto ETFs.