The $1.5 trillion asset-management firm Franklin Templeton had filed for an XRP ETF in March, with the deadline in September this year. The US Securities and Exchange Commission (SEC) has delayed Franklin Templeton’s Spot ETF approval to November 15, 2025.
The delay comes as the SEC is looking to limit ETF approvals beyond Bitcoin and Ethereum. The entry of institutional funds into the digital assets sector is prompting stricter compliance from the relevant department. The pushback from the SEC on Franklin Templeton’s XRP ETF comes as Ripple was embroiled in a legal dispute with the department.
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SEC Pushes Back on Franklin Templeton’s XRP ETF
The SEC could still deny Franklin Templeton’s XRP ETF, as the regulator is being cautious not to approve any digital assets beyond Bitcoin and Ethereum. In addition, Ripple applied for a National bank charter, which is overseen by the Office of the Comptroller of the Currency (OCC). Ripple aims to operate as a bank after receiving a license from the Federal government. However, the OCC is not stamping licences easily anymore as they are scrutinizing capital, management, and compliance.
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Ripple must show that it meets all the stringent standards to act as a bank. Even several established financial firms have not received a National charter licence to operate as a bank. Ripple might receive further scrutiny as it is a nonbank institution and has nothing to do with lending money. The OCC might find Ripple’s application ill-conceived, as nonbanks rarely receive permits. Similar to the SEC’s delay on Franklin Templeton’s XRP ETF, the OCC could also buy time.
The non-stop barrage of cryptocurrency ETFs by institutional funds is making the SEC remain cautious. Investors’ money is being diverted from the stock market to the cryptocurrency market. The risk remains high, and it won’t come as a surprise if the SEC rejects Franklin Templeton’s XRP application in November.