U.S. SEC Delays Key Crypto ETF Decisions

The U.S. Securities and Exchange Commission (SEC) has once again hit the brakes on key crypto ETF decisions. This time, the regulator is delaying approvals for Ethereum staking proposals from top financial giants like BlackRock, Fidelity, and Franklin Templeton, leaving the crypto market watching closely.

Delayed ETF Proposals

The SEC has extended the deadline for its decision on ETF proposals seeking to add staking features and track major altcoins. Per a Sept. 10 filing, the commission postponed its ruling on BlackRock’s proposal to allow Ethereum staking within its iShares Ethereum Trust. Originally due September 15, the decision has been pushed to October 30, 2025.

First of Its Kind

If approved, it would be the first exchange-traded fund of its kind. The SEC said it needed additional time to review the proposals. “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the agency wrote.

Multiple Delays

In addition, the regulator also extended the review period for Fidelity’s proposal to add staking features to its Ethereum ETF, pushing the deadline to Nov 13. BlackRock, Fidelity, and Franklin Templeton are not alone in facing setbacks on staking ETFs. Other delays include CBOE’s 21Shares Ethereum ETF, now due October 23, and NYSE’s Grayscale Ethereum ETF, postponed to October 29.

Regulatory Caution

This wave of delays suggests the SEC is treading cautiously, especially around staking products, which have historically triggered concerns regarding custody, market manipulation, and investor protection. The regulator is likely taking a careful approach to ensure that these products meet the necessary standards for investor safety.

Other Delays

Beyond staking ETFs, other applications were also delayed. The agency assigned a Nov 14 deadline for Franklin Templeton’s proposals to launch funds tracking Solana and XRP. This further delay highlights the SEC’s cautious approach to crypto-based ETFs.

Reasons for Delay

While the SEC refrained from giving specific reasons beyond ‘needing more time,’ the broader context suggests regulatory unease around staking mechanics and altcoin classifications. The Commission may also be buying time to finalize its proposed Generic Listing Standards, a rule framework designed to streamline the listing process for crypto-based ETFs.

Generic Listing Standards

If adopted, this could allow funds to bypass the traditional Form 19b-4 process and gain approval after a 75-day review period. This would provide a more efficient and streamlined process for crypto-based ETFs to come to market.

Growing Institutional Interest

Meanwhile, there has been a growing institutional interest in crypto investment vehicles in the past few months, thanks to the crypto-friendly climate under the administration of Donald Trump and the SEC Chairman, Paul Atkins. This growing interest highlights the potential for crypto-based ETFs to attract significant investment.

Regulatory Limbo

Still, more than 90 crypto ETFs remain in regulatory limbo. The SEC has remained conservative in its approach to launching more crypto ETFs following Bitcoin and Ethereum’s approval in early 2024. For now, the crypto industry is on edge as October and November deadlines approach, waiting to see how the SEC will proceed with these pending applications.

Impact on bitpulse

The delays in crypto ETF approvals will likely have a significant impact on the crypto market, including websites like bitpulse that provide news and information on the crypto industry. As the SEC continues to navigate the complex regulatory landscape, bitpulse will be watching closely to provide updates and insights to its readers.