SEC Delays Decision on Franklin XRP Fund Listing
The U.S. Securities and Exchange Commission (SEC) has announced an extension in its review of a proposed rule change filed by Cboe BZX Exchange, Inc. (BZX) regarding the listing and trading of shares for the Franklin XRP Fund. This extension allows the Commission more time to evaluate the potential implications and market impact of introducing a new commodity-based trust tied to XRP, the cryptocurrency associated with the XRP Ledger.
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Background of the Proposal
On March 13, 2025, BZX submitted a proposal to the SEC under Section 19(b)(1) of the Securities Exchange Act of 1934, along with Rule 19b-4, to list and trade shares of the Franklin XRP Fund pursuant to BZX Rule 14.11(e)(4). The proposed rule change was published in the Federal Register on March 19, 2025, initiating the mandatory 45-day window for Commission action. That period was originally set to expire on May 3, 2025.
Legal Authority for Extension
According to Section 19(b)(2) of the Securities Exchange Act, the SEC is permitted to extend the review period up to 90 days from the date of the proposal’s publication if it determines that more time is needed. The Commission must also publish the reasons for such an extension. The SEC exercised this authority in response to the need for a more comprehensive analysis of the issues raised in the proposal.
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New Deadline Set for Decision
The SEC has now designated June 17, 2025, as the new deadline by which it must make a final decision—either to approve, disapprove, or initiate proceedings to evaluate the disapproval of the rule change. This step is essential to ensure regulatory integrity and to assess whether the proposed XRP-based investment product aligns with investor protection and market efficiency standards.
Conclusion
This extension does not imply a stance for or against the Franklin XRP Fund but rather reflects the SEC’s commitment to due diligence. As digital asset products continue to evolve, regulatory bodies are taking measured steps to understand their full implications. Stakeholders and market participants now await the SEC’s final ruling, which could have significant repercussions for the future of crypto-based investment products in traditional markets.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
