SEC Extends Deadlines for Major Crypto ETF Applications from BlackRock and Franklin Templeton

TLDR

• SEC delays BlackRock and Franklin Templeton crypto ETF decisions until October and November 2024
• BlackRock’s Ethereum staking proposal deadline extended to October 30, 2024
• Franklin Templeton’s Solana and XRP ETF decisions pushed to November 13-14, 2024
• SEC continues delaying multiple crypto ETF applications despite pro-crypto stance under new leadership
• Commission has at least 92 crypto-linked ETF proposals under review as of August 2024

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The U.S. Securities and Exchange Commission has delayed decisions on several high-profile crypto ETF applications. The federal agency pushed back deadlines for proposals from major asset managers BlackRock and Franklin Templeton.

According to SEC filings released Wednesday, Franklin Templeton faces new deadlines for its crypto fund applications. The commission set November 13 for the company’s Ethereum staking amendment decision. Franklin’s Solana and XRP ETF proposals now have a November 14 deadline.

BlackRock’s iShares Ethereum Trust staking proposal received a new deadline of October 30. The amendment would allow the ETF to stake Ethereum tokens for additional returns. Nasdaq originally filed this proposal on July 16.

The SEC published BlackRock’s staking proposal in the Federal Register on August 1. This publication started the official 45-day review window. The initial deadline was September 15 before the extension.

Franklin Templeton filed its Ethereum, Solana, and XRP proposals with Cboe BZX in mid-March. These applications have been under review for several months. The company seeks to launch ETFs tracking these digital assets.

Current Review Process

The SEC operates under Section 19(b) of the Securities Exchange Act for ETF approvals. The commission has 45 days from publication to act on proposed rule changes. This period can extend to 90 or 180 days in complex cases.

The agency can add an additional 60 days in certain circumstances. The current delays represent the maximum extensions available before final decisions. The filings do not indicate the SEC’s position on these applications.

The commission stated it needs more time to evaluate the proposals. Officials said they find it appropriate to designate longer review periods. This allows sufficient time to consider the proposals and related issues.

Broader Crypto ETF Delays

The SEC has delayed numerous crypto ETF applications beyond these major proposals. On Tuesday, the agency postponed decisions on the Bitwise Dogecoin ETF and Grayscale Hedera ETF. Both reviews now extend until November 12.

In August, the SEC issued multiple extensions on pending crypto ETF applications. These included NYSE Arca’s Truth Social Bitcoin and Ethereum ETF, due October 8. The 21Shares and Bitwise Solana ETFs were pushed to October 16.

The commission also delayed the 21Shares Core XRP Trust until October 19. The WisdomTree XRP Fund received a new deadline of October 24. The Canary PENGU ETF decision moved to October 12.

Policy Shifts and Market Context

The SEC has changed its approach to digital assets since January 2025. SEC Chair Paul Atkins launched “Project Crypto” on July 31. This commission-wide initiative aims to modernize securities rules for digital assets.

The project seeks to bring digital asset trading, lending, and staking under unified regulations. At a Paris conference Wednesday, Atkins declared that “Crypto’s time has come.” This represents a shift from previous SEC positions.

The commission has already stated that staking activities are not securities. This clarification could support approval of staking-enabled ETFs. The REX-Osprey Solana ETF, the first SOL ETF, already includes staking features.

As of August 29, the SEC had at least 92 crypto-linked ETF proposals under review. The backlog continues growing despite the agency’s stated pro-crypto stance. Multiple asset managers await decisions on their digital asset fund applications.

The commission faces final deadlines for several Ethereum staking proposals in late October. Decisions on 21Shares Ethereum ETF staking come due October 23. Grayscale’s ETH ETF staking proposal has an October 29 deadline, one day before BlackRock’s decision date.

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