- Franklin Templeton’s application for a spot XRP exchange-traded fund (ETF) is delayed by the U.S. Securities and Exchange Commission (SEC) until November 15, 2025.
- The SEC is cautious about approving digital asset ETFs beyond Bitcoin and Ethereum.
- The regulator’s hesitation is partly due to ongoing legal issues between Ripple and the SEC.
- Ripple has also applied for a national bank charter from the Office of the Comptroller of the Currency (OCC), facing strict scrutiny.
- Institutional interest in crypto ETFs continues to rise, leading to more careful monitoring by regulators.
Franklin Templeton, which manages about $1.5 trillion in assets, has had its application for a spot XRP ETF postponed by the U.S. Securities and Exchange Commission (SEC) until November 15, 2025. The SEC is reviewing the proposal as it considers more limits on ETFs based on digital assets other than Bitcoin and Ethereum.
The SEC’s delay comes as more institutional funds are seeking entry into the digital assets sector. The regulator is increasing its focus on compliance, especially after ongoing legal disputes with Ripple, which is connected to the XRP token.
In a related move, Ripple has applied for a national bank charter overseen by the Office of the Comptroller of the Currency (OCC). A national bank charter would allow Ripple to operate as a bank once it receives a federal license. According to the article, the OCC has made the licensing process more strict, with stricter requirements for capital, management, and compliance.
The non-stop barrage of cryptocurrency ETFs by institutional funds is making the SEC remain cautious, states the source. Investors shifting money from traditional stocks to cryptocurrencies has increased regulatory concern about market risks. The SEC may still deny Franklin Templeton’s ETF proposal if those risks are seen as too high.
For now, the review process continues. While some financial institutions are waiting for similar bank licenses, the OCC rarely grants charters to nonbank firms. Like the SEC, the OCC could take more time to decide on Ripple’s application.
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