SEC Delays XRP and Litecoin ETF Decisions, Acknowledges Staked TRON ETF Filing

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decisions on several cryptocurrency exchange-traded fund (ETF) proposals, affecting applications for XRP, Litecoin (LTC), and spot Bitcoin ETFs, according to Bloomberg ETF analyst James Seyffart. However, in a rare positive development, the SEC has formally acknowledged Canary Funds’ filing for a staked TRON (TRX) ETF, signaling potential progress for the TRON ecosystem.

Multiple Crypto ETF Approvals Delayed

In a post on X on May 22, 2025, Seyffart noted that the delays impact filings from major players, including Bitwise and CoinShares’ XRP ETF proposals, CoinShares’ Litecoin ETF application, and Fidelity’s attempt to adjust its spot Bitcoin ETF structure. These postponements align with the SEC’s standard review process for 19b-4 filings, which typically carry deadlines extending to October 2025.

Despite the lack of detailed reasoning from the SEC, the delays have not significantly impacted the prices of the affected cryptocurrencies. As of press time on May 23, 2025, XRP was trading at $2.42, reflecting a modest 0.9% increase over the past 24 hours, according to CoinGecko. Similarly, Litecoin’s price stood at $100.42, up 1.6% in the same period, indicating market resilience amid regulatory uncertainty.

In another post, Seyffart emphasized that the delays are not surprising, stating, “The SEC *typically* takes the full time to respond to a 19b-4 filing. Early decisions would be the action that’s out of the norm. No matter how ‘Crypto-friendly’ this SEC is. There’s no conspiracy here.”

Acknowledgement of Staked TRON ETF Filing

The acknowledgment of Canary Funds’ staked TRX ETF filing stands out as a notable exception. Submitted in April 2025, the proposed ETF aims to provide investors with exposure to TRX price movements and staking rewards, a novel approach that could bridge decentralized finance (DeFi) with traditional markets. According to StakingRewards, TRX currently offers an annualized staking yield of approximately 4.55%, making it an attractive option for yield-seeking investors. The filing, supported by a 19b-4 submission from the Cboe BZX Exchange, represents a significant step toward integrating TRON’s staking model into regulated financial products.

However, the SEC’s acknowledgment has not yet translated into significant price movement for TRX, which traded at $0.2733, up 0.6% over the past 24 hours as of press time.

Numerous Crypto ETFs Await Approval

A wide range of ETF proposals, including those for altcoins, staked Bitcoin and Ethereum products, and spot purchase/redemption mechanisms, are currently under SEC review. The appointment of Paul Atkins, a known crypto advocate, as SEC Chair, has fueled optimism about the eventual approval of these products. However, no altcoin ETFs have been approved to date, and industry experts suggest the SEC is prioritizing the establishment of a clear regulatory framework for crypto ETFs before making decisions on the backlog of altcoin proposals.

Seyffart predicted that the earliest possible approvals could come by late June or early July, though a more likely timeline points to early Q4 2025. Seyffart noted that the SEC typically takes the full allotted time to review 19b-4 filings, with most deadlines set for October 2025.

In a recent congressional hearing, SEC Chair Atkins emphasized the development of a “reasonable regulatory framework” for crypto assets as a top priority. This framework aims to establish clear rules for the issuance, custody, and trading of digital assets, potentially paving the way for broader ETF approvals. The crypto industry is closely monitoring these regulatory developments, with hopes that more altcoin ETFs will join the ranks of approved Bitcoin and Ethereum ETFs under a well-defined regulatory structure.