What to Know:
- The SEC postponed decisions on several spot crypto ETF applications.
- It is unlikely any decisions will be made before the confirmation of Paul Atkins, nominated by Donald Trump, as SEC chair.
Despite recent acknowledgments from the SEC regarding multiple spot crypto ETF applications, decisions about approvals are anticipated to be delayed until the leadership of the agency is firmly established.
“I would have been very very surprised if they approved any of these filings before [Paul] Atkins was confirmed at their first deadlines,” noted James Seyffart, an ETF analyst at Bloomberg Intelligence. A person familiar with the situation shared a similar sentiment, adding that while an early approval might be possible, it remains unexpected.
President Trump has appointed Paul Atkins, the former SEC commissioner, to lead the agency after former chair Gary Gensler’s departure in January. However, a confirmation hearing for Atkins is yet to be scheduled.
The SEC also recently delayed decisions on several other crypto ETFs, such as those involving XRP, Solana, and Dogecoin, with the industry observing the crucial need for regulatory clarity moving forward.
In prior ETF applications regarding Bitcoin and Ether, the SEC has often taken full advantage of procedural delays, extending deadlines significantly, which means any upcoming applications could see similar treatment.
Importance of Leadership Confirmation
Resolving the leadership of the SEC is vital for the future of cryptocurrency ETF approvals, as SEC decisions have begun taking longer without a confirmed chair in place. Analysts remain focused on the timing of these confirmations and their impact on market activities.
