The United States Securities and Exchange Commission (SEC) has delayed its decisions for the second time on two popular altcoin exchange-traded fund (ETF) proposals.
In an announcement, the agency extended the review period for NYSE Arca’s application to list the Bitwise Dogecoin ETF, which was filed in March.
Also on Tuesday, the SEC extended its ruling on Grayscale’s proposed Hedera (HBAR) ETF.
Both products now have a decision timing deadline of November 12, as the SEC continues to take the full time allowed by statutory review procedures.
Growing Backlog of Altcoin ETF Applications
The delay comes amid an ETF application pipeline that is becoming ever more crowded.
According to Bloomberg Intelligence and analyst James Seyffart, there are 92 active crypto-related exchange-traded products that the SEC is reviewing, illustrating the growing institutional appetite in the crypto market.
Eight of those are Solana (SOL) ETFs, and seven are Ripple (XRP) ETFs.
Also Read: Binance And SEC Lawsuit Agreed To Be Put On Hold, Joint Statement Required Before 14th April
At the same time, the market is still seeing new products come into the marketplace, such as the Canary Staked SEI ETF, which was acknowledged by the SEC on September 8 and is now under review.
If successful, SEI would be the first U.S.-listed ETF to be associated with the SEI blockchain.
SEC Balances Investor Protection with Industry Growth
The delays reflect the SEC’s careful and measured approach to reaching a decision about altcoin ETFs.
These go on to show the concerns that have arisen regarding investor protection, overall market volatility, and lack of a proper regulatory structure.
While some industry observers view the delays as obstacles, the SEC has framed them as justifiable methods of careful consideration and review of these new types of ETF products.
The SEC’s reluctance can be seen as part of its larger picture of close scrutiny of crypto-related products before approval, specifically now that demand has grown exponentially and these digital assets are complex.
The notion of protecting investors while supporting industry development illustrates an ongoing struggle.
Also Read: Utah Federal Judge Denies Appeal In SEC Lawsuit Against Alleged $18 Million Crypto Mining Fraud
Recent Regulatory Shifts and Industry Implications
These recent events follow other significant SEC developments over the past months.
On August 12th, the agency concluded its long-running, 5-year case against Ripple with a $125 million penalty (it dropped its appeal), according to UnoCrypto.
Now that the lawsuit has finished, the commissioners (Hester Peirce and Paul Atkins) have been working on crafting a clearer crypto policy.
Just weeks later, on September 4th, we reported that the SEC announced a rule-making framework that could change the U.S. crypto footprint, allowing tokens to trade on regulated exchanges and clarifying how broker-dealer rules will work in that space.
All of this suggests that, while we still anticipate delays, these efforts indicate that the SEC is laying the groundwork for a more regulated environment surrounding crypto ETFs and digital asset markets in general.
Also Read: California Federal Judge Rejects Kraken’s Attempt to Appeal SEC Lawsuit