On Tuesday, the SEC delayed its decision on the Grayscale XRP ETF. As the XRP community is waiting for a judgment, a bigger question looms: is it a prudence or a hidden battle with XRP? With giants like Franklin Templeton joining the ETF race and the price swing of XRP, a tense showdown between innovation and regulation is unfolding. What is the real function behind the SEC door?
SEC Delay Decision
The Securities and Exchange Commission (SEC) has postponed its decision to apply for Grayscale XRP ETF, according to a notice filed on Tuesday. The next deadline for their decision is set on May 21, although the final decision will not be made until mid-October. The committee said it would take “longer” to review the application. The decision will determine whether the proposed on-site XRP ETF is approved or rejected.
Not long ago, in the second half of February 2025, the Grayscale XRP ETF appeared in the U.S. Federal Register, starting a 21-day public opinion period. It is listed along with three other XRP ETF applications from Canary Capital, WisdomTree and Bitwise.
XRP ETF signals in the financial world
Another major Tradfi player joined the game after the SEC announcement. Franklin Templeton, a well-known name in traditional finance, has submitted an application for XRP ETF to the regulator.
Previously, on October 9, 2024, BE Asset Management became the first company to submit an XRP ETF application to the SEC. The file marks the beginning of a wave of interest in XRP ETFs. Bitwise believes that the 2023 legal ruling determines that XRP is not safe when sold to retail investors, and it provides sufficient legal basis for SEC approval.
In addition, according to the neighborhood, Europe’s famous Crypto ETF product provider also applied for the US XRP ETF on November 15, 2024. The document highlights the cross-border payment potential of XRP, citing Ripple’s relationship with global banks. Even if the SEC remains silent about the review process, this development further strengthens the confidence of the XRP community.
Source: ISTOCK
All in all, several major financial companies have taken steps to bring XRP ETFs to the U.S. market so far. This wave of interest began in late 2024, with increasing attention from financial institutions. However, the Securities and Exchange Commission (SEC) appeal in October 2024 weakened expectations, eventually reaching the final in a delay in the approval of the XRP ETF on March 11. This creates a landscape where investors are both hopeful and cautious.
XRP supporters’ response
The SEC delay pushes the deadline to June 15, 2025, causing a mixed reaction in the crypto community, especially in the “XRP Army” (the “XRP Army” of loyal XRP investors). Many XRP investors and supporters expressed obvious disappointment at the delay. According to Coingecko, the price of XRP fell 4% in 24 hours to around $2.15, reflecting short-term negative sentiment in the market. Some members of the community remain optimistic that Franklin Templeton’s entry was stronger than the SEC’s delay. Discussions about X suggest that for political reasons, the SEC may intentionally hinder XRP, or favor other assets that have been approved by ETFs, such as Bitcoin and Ethereum. This frustration is nothing new, it continues the objection within the XRP community and has been ongoing since the 2020 chain lawsuit.
Institutional investors and analysts take a more balanced view, focusing on long-term impact rather than short-term responses. Expecting the delay, Bloomberg ETF expert James Seyffart said: “The SEC may stagnate until a corrugated lawsuit is resolved or Congress has new regulations in place.” He noted that institutional investors are used to the slow pace of the SEC on crypto issues. Funds like Bitwise and 21shares seem to be ready for this situation, with no signs of withdrawing their applications. Most institutional investors see it as part of the long journey XRP has accepted in the United States
