The U.S. Securities and Exchange Commission (SEC) has once again extended its review timelines for several high-profile cryptocurrency exchange-traded funds (ETFs), pushing key decisions into the summer of 2025. This latest development underscores the ongoing regulatory scrutiny surrounding digital assets and their integration into traditional financial markets. While investors and issuers await clarity on major filings—including the XRP ETF, Ethereum staking ETFs, and Dogecoin ETF—the pace of approvals remains deliberate, reflecting the SEC’s cautious approach.
Despite these delays, momentum in the crypto ETF space continues to build. With over 70 filings currently under review, the market is closely watching which assets might break through first. Interestingly, Litecoin has emerged as a potential frontrunner for expedited approval, suggesting that not all crypto ETFs face the same regulatory hurdles.
SEC Extends Review on XRP and Ethereum Staking ETFs
On May 20, 2025, the SEC announced an extension in its evaluation period for two significant proposals. The first involves Franklin Templeton’s application for an XRP-based ETF, which now has an additional review window extending into mid-June. This delay allows regulators more time to assess complex legal questions around XRP’s classification and compliance with securities laws.
The second delayed decision concerns Bitwise’s proposal to incorporate staking functionality into its Ethereum ETF. Originally expected earlier in the year, the ruling has been rescheduled to July 6, 2025. Staking introduces additional layers of regulatory complexity due to concerns about investor control, yield generation, and network participation—issues the SEC is carefully weighing.
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These extensions are accompanied by public comment periods, a standard step in the SEC’s rulemaking process. By soliciting feedback from industry stakeholders, legal experts, and the general public, the commission aims to establish a robust regulatory foundation before greenlighting new financial products.
Dogecoin and Solana ETFs Also Face Delays
The Dogecoin ETF proposed by Bitwise was initially set for a decision on April 29, 2025. However, the SEC has pushed back that deadline to June 15, 2025, citing the need for further analysis. As one of the most recognizable meme coins with a massive retail following, Dogecoin’s potential inclusion in a regulated ETF structure carries symbolic weight—but also heightened scrutiny.
Similarly, multiple Solana-based ETF applications have seen their timelines extended:
- Bitwise and 21Shares’ Solana ETF review now concludes by July 6, 2025.
- VanEck and Canary Capital’s competing Solana proposal faces a decision window in early July.
These repeated postponements reflect both the technical novelty of proof-of-stake networks like Solana and the sheer volume of applications flooding the SEC’s docket. With each extension, the agency emphasizes thoroughness over speed, prioritizing investor protection amid rapid innovation.
Why Litecoin Could Be Fast-Tracked
Amid widespread delays, Litecoin stands out as a likely candidate for quicker approval. Analysts point to several factors that may give it an advantage:
- Established track record: Launched in 2011, Litecoin has operated for over a decade without major security breaches or governance controversies.
- Clear regulatory positioning: Unlike newer altcoins with ambiguous tokenomics or centralized control, Litecoin’s decentralized nature and transparent development align more closely with traditional asset models.
- Lower volatility profile: Compared to meme-driven or smart-contract-focused cryptos, Litecoin has demonstrated relatively stable price behavior—making it potentially more palatable to risk-averse regulators.
While no official timeline has been announced for a Litecoin ETF decision, market observers suggest it could receive approval well before other pending applications.
Navigating the Broader Crypto ETF Landscape
With more than 70 crypto ETF filings currently pending, the SEC is navigating uncharted territory. Each application represents a unique blend of technology, economics, and legal interpretation. The agency’s methodical pace—though frustrating to some investors—reflects a commitment to ensuring market integrity and long-term stability.
Historically, the SEC has used nearly the full statutory review period for major financial innovations. As analyst James Seyffart notes, final decisions on complex products often arrive in October or later. This pattern isn’t necessarily a sign of hostility toward crypto but rather adherence to procedural rigor.
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Frequently Asked Questions (FAQ)
Q: Why is the SEC delaying so many crypto ETF decisions?
A: The SEC extends review periods to conduct comprehensive legal and financial analyses, especially when new technologies like staking or decentralized networks are involved. Public comment periods and high application volumes also contribute to slower processing times.
Q: Will there be an XRP ETF in 2025?
A: While no final decision has been made, Franklin Templeton’s XRP ETF remains under active review with a deadline extending into mid-2025. Approval will depend on whether regulators determine XRP qualifies as a non-security under current law.
Q: What makes staking controversial in Ethereum ETFs?
A: Staking introduces questions about investor rights, passive income classification, and issuer responsibilities. The SEC wants to ensure that staked assets don’t create unintended liabilities or mislead investors about risk and control.
Q: Is a Dogecoin ETF likely?
A: Despite strong retail interest, Dogecoin’s meme origins and concentrated supply raise concerns about market manipulation and valuation transparency. These factors may delay approval compared to more established cryptocurrencies.
Q: Why is Litecoin considered safer for an ETF?
A: Its long operational history, decentralized network, and consistent monetary policy make Litecoin appear less risky from a regulatory standpoint. It also lacks the smart contract complexities that complicate oversight.
Q: How many crypto ETFs are currently under SEC review?
A: As of mid-2025, over 70 crypto-related ETF applications are pending across various issuers and digital assets—from Bitcoin and Ethereum to niche altcoins like Solana and Dogecoin.
The Balancing Act Between Innovation and Regulation
The prolonged evaluation of crypto ETFs highlights a fundamental tension in modern finance: how to foster innovation without compromising investor safety. On one hand, faster approvals could accelerate institutional adoption and bring greater liquidity to digital asset markets. On the other hand, premature authorization of poorly understood products could expose retail investors to unforeseen risks.
The SEC’s current strategy appears designed to strike this balance—allowing time for education, consultation, and precedent-setting while maintaining an open door to innovation.
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As summer 2025 approaches, all eyes will be on Washington for signs of movement. Whether it’s the first staking-enabled Ethereum ETF or a surprise approval for Litecoin, each decision will shape the trajectory of crypto’s journey into mainstream finance.
Ultimately, patience may prove essential—not just for regulators, but for investors eager to see digital assets gain broader acceptance within traditional markets.