SEC’s Public Comment Period on Cryptocurrency ETFs
The U.S. Securities and Exchange Commission (SEC) has initiated a public comment period regarding the proposed exchange-traded funds (ETFs) focused on cryptocurrencies, specifically those by Franklin Templeton. These funds, named the Franklin XRP ETF and Franklin Solana ETF, are intended for listing on the Chicago Board Options BZX Exchange.
SEC’s Statement and Proceedings
In a statement made on Tuesday, the SEC indicated it is starting proceedings which may eventually lead to the approval for these ETFs to be listed and traded. This follows the BZX Exchange’s rule change proposal submitted in March, which the SEC delayed considering until April, now requiring a decision by the end of July.
The SEC clarified in its announcements that the initiation of these proceedings does not suggest any conclusions have been reached regarding the proposals. Instead, the agency is looking to gather input from the public on the proposed rule change.
Impact of Public Comment Period
Once these notices are published in the federal register, the deadline for the SEC to make a decision regarding the ETFs will be extended by 35 days. This development is significant given that while spot ETFs for Bitcoin and Ether have already received SEC approval, a number of companies are keen to be the first to gain approval for ETFs linked to cryptocurrencies like XRP and Solana.
Other Firms Seeking Crypto-Related ETFs
Franklin Templeton is not the only institution seeking to offer crypto-related investment products. Other firms, including Bitwise, ProShares, and 21Shares, have also submitted proposals to the SEC for similar listings involving cryptocurrencies.
Shifts in the Regulatory Landscape
The regulatory landscape surrounding digital assets has shifted notably since the Trump administration, especially under the leadership of Paul Atkins at the SEC, with a reduction in enforcement actions against crypto enterprises. However, it remains uncertain if this lenient approach will apply to the current proposals for ETFs linked to XRP and Solana.
Interestingly, during Trump’s administration, there were discussions regarding the potential inclusion of these assets in a proposed U.S. cryptocurrency stockpile.
