Regulatory obstacles may be keeping XRP exchange-traded funds (ETFs) in a state of inactivity, according to a recent report.

Regulatory obstacles may be keeping XRP exchange-traded funds (ETFs) in a state of inactivity, according to a recent report.

The United States Securities and Exchange Commission (SEC) has delayed the approval of spot cryptocurrency Exchange-Traded Funds (ETFs), including XRP ETFs, due to regulatory caution and ongoing legal uncertainties. The extended public commentary period for these ETFs will last until late July 2025, after which the SEC must decide whether to approve, deny, or delay further.

In a significant development, the SEC is revamping its approval process for spot crypto ETFs. The current 240-day review process under rule 19b-4 is expected to be replaced by a streamlined, unified 75-day rule. This new rule aims to provide more regulatory clarity and speed up approvals across various cryptocurrencies, including Solana, XRP, Dogecoin, and others. The SEC released plain-English guidance in early July 2025 and expects a broader framework by autumn 2025.

Market analysts predict a wave of new ETF approvals in the second half of 2025, with a strong chance of approval for Solana, XRP, and Litecoin spot ETFs, standing at around 95%. The final SEC decision deadline for these altcoin ETFs is expected by October 2025. This outlook suggests that Solana ETFs might be approved alongside or even slightly ahead of XRP ETFs, benefiting from the improved regulatory clarity and the new approval process.

However, the odds of a spot XRP ETF being approved by July 31 currently stand at only 7%, down from 32% at the beginning of the month. A key factor is the ongoing Ripple v. SEC lawsuit, which has created uncertainty about XRP's legal status. An important related event is the status report on August 15, 2025, in the Ripple lawsuit that could influence the SEC’s decision by clarifying institutional XRP sales and potential penalties.

The SEC's decision to delay the approval of XRP ETFs and the ongoing legal uncertainties highlight the evolving regulatory environment for altcoin ETFs. The new unified framework, once implemented, is expected to provide more clarity and speed up the approval process for various cryptocurrencies. The launch of the first staking-enabled Solana ETF, initially expected to kickstart "crypto ETF summer," has not materialized as expected.

Bitwise's Matt Hougan has stated that the existence of the SEC's guidance indicates that such ETFs are becoming part of mainstream finance. A 12-page document outlining disclosure requirements for spot-based crypto ETFs was issued by the SEC earlier this month. The SEC is currently working on streamlining the process of greenlighting spot-based crypto ETFs by designing special guidance.

In conclusion, while the approval of XRP ETFs is currently on hold due to legal uncertainties, the evolving regulatory environment signals growing acceptance of altcoin ETFs. The new unified framework, once implemented, is expected to provide more clarity and speed up the approval process for various cryptocurrencies, potentially leading to a wave of new ETF approvals in the second half of 2025.

Investors may find increased opportunities for crypto finance and investing with the revised SEC approval process for spot crypto ETFs. As regulatory clarity improves, there is a strong possibility for the approval of Solana, XRP, and Litecoin spot ETFs, with an anticipated 95% chance, according to market analysts. The launch of the first staking-enabled Solana ETF, initially aimed to initiate "crypto ETF summer," is yet to materialize, but the new framework is expected to streamline the process, potentially leading to a wave of new ETF approvals in the second half of 2025.

Read also: