Regulator Pushes Decision Deadline to July Amid Broader Shift in Crypto Policy Under Trump Administration

The U.S. Securities and Exchange Commission (SEC) has opened a public comment period on two proposed crypto exchange-traded funds (ETFs) from Franklin Templeton, one tied to XRP and the other to Solana (SOL). The move represents a procedural step forward for both filings, though approval remains uncertain.

In separate notices published on Tuesday, the SEC announced it was initiating proceedings to determine whether to approve or disapprove the proposed rule changes submitted by the Cboe BZX Exchange, which seeks to list and trade the ETFs.

“Institution of proceedings does not indicate that the Commission has reached any conclusions,” the SEC stated. “Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”

Franklin Templeton Aims to Expand Crypto ETF Offerings

The filings in question were initially submitted in March, with the SEC electing to delay a decision in April. With this week’s notices, the Commission has extended the deadline by an additional 35 days, pushing the final decision into late July — though that deadline may be postponed further.

Franklin Templeton, one of the world’s largest asset managers, already offers spot Bitcoin and Ether ETFs, which were approved earlier in 2024 alongside products from BlackRock, Fidelity, and others. The firm now seeks to become among the first to offer regulated exposure to alternative digital assets, including XRP and Solana.

A New Era at the SEC?

The move comes as the SEC undergoes a major regulatory shift under the Trump administration, with Paul Atkins, a noted crypto proponent, now serving as SEC chair.

Under Atkins’ leadership, the Commission has already:

• Withdrawn several high-profile enforcement actions against crypto firms

• Abandoned controversial rule proposals targeting DeFi and digital asset custody

• Publicly expressed openness to further ETF expansion beyond Bitcoin and Ether

It remains unclear whether this friendlier stance will extend to XRP or Solana, both of which have historically faced regulatory uncertainty under previous leadership.

“We are certainly seeing a more flexible and market-driven SEC under Atkins,” said one regulatory analyst. “But ETF approval for non-Bitcoin assets still faces hurdles.”

Growing Competition Among Issuers

Franklin Templeton is not alone in pursuing XRP or SOL-based ETFs. Other asset managers with pending applications include:

• Bitwise

• 21Shares

• ProShares

Each is competing to be the first-to-market for ETFs tied to layer-1 blockchain tokens outside of Bitcoin and Ethereum.

The filing race has intensified amid speculation that the SEC could approve the first XRP or Solana ETF before the end of the year — especially if regulatory clarity continues to improve.

Trump’s Crypto Stockpile Vision Adds Momentum

Adding to the momentum is President Donald Trump’s proposal to establish a U.S. Strategic Crypto Reserve, which he has suggested could include assets like XRP and Solana, in addition to Bitcoin and Ethereum.

Trump has previously:

• Supported Bitcoin ETFs

• Pledged to build a national crypto stockpile

• Appointed pro-crypto figures to leadership positions across key regulatory agencies

While symbolic, the president’s messaging has helped reshape investor sentiment and may influence how regulators evaluate the strategic importance of certain crypto assets.

XRP, Solana Still Face Classification Challenges

Despite improving sentiment, regulatory classification remains a sticking point for both assets:

• XRP was labeled an unregistered security in a 2020 SEC lawsuit against Ripple Labs, though a 2023 ruling clarified that secondary sales of XRP were not securities

• Solana, while not the subject of a direct SEC action, was named in prior lawsuits as potentially falling under securities law — a classification that would affect ETF eligibility

Whether the SEC under Atkins will formally drop its prior legal stance on XRP and SOL remains to be seen. Until that happens, ETF approval could be legally vulnerable, depending on how courts interpret existing securities law.

Next Steps: Public Comments and Review

Now that the proposals have been published in the Federal Register, the public has 35 days to submit comments, feedback, or objections to the SEC. After that, the Commission may:

• Approve the proposed ETFs

• Deny the rule change

• Issue another delay for further consideration

Given the high stakes and precedent-setting nature of these ETFs, legal experts anticipate a robust comment period from both industry participants and critics.

Conclusion

The SEC’s decision to open public comments on Franklin Templeton’s XRP and Solana ETF proposals marks another step toward broader crypto ETF diversification in the U.S. market. While regulatory headwinds remain, especially around asset classification, the ongoing policy shift under SEC Chair Paul Atkins and the Trump administration may pave the way for eventual approval.

As attention now turns to the July decision deadline, the outcome could determine whether altcoin-based ETFs become a mainstream investment vehicle — or remain sidelined in regulatory limbo.