TLDR
- The SEC delays Franklin Templeton’s decision on a spot XRP ETF amid ongoing regulatory concerns over market manipulation.
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Franklin Templeton’s XRP ETF proposal faces delay as SEC examines potential risks and investor protection issues.
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The SEC continues to hold back approval for crypto ETFs as market risks and manipulation concerns persist.
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Franklin Templeton’s spot XRP ETF, filed in March, is a key player in the growing crypto ETF market.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Franklin Templeton’s proposed spot XRP exchange-traded fund (ETF). The delay, announced late Tuesday, marks another chapter in the ongoing regulatory hurdles faced by cryptocurrency-based financial products in the U.S. This is the latest postponement in a string of delays involving crypto ETFs, as the SEC grapples with market manipulation concerns and investor protection issues.
Franklin Templeton, one of the largest asset managers in the world with over $1.5 trillion in assets, initially filed for the spot XRP ETF in February 2025. The proposal aimed to provide U.S. investors with direct exposure to XRP, one of the leading cryptocurrencies, through a traditional exchange-traded vehicle. However, the SEC’s decision has been postponed, as the agency continues to scrutinize the potential risks associated with such a product.
Regulatory Concerns Over Market Manipulation
The SEC has historically expressed concerns regarding the possibility of market manipulation and the security of digital assets in ETFs. These concerns are amplified when it comes to cryptocurrencies like XRP, which have been subject to volatility and regulatory scrutiny in the past.
In particular, the SEC has raised alarms about the potential for manipulation in the digital asset market, especially in light of recent volatility and issues surrounding the liquidity of assets like XRP.
This delay follows a pattern in which the SEC has postponed decisions on a series of crypto ETF applications, citing the need to ensure that proper safeguards are in place to protect investors.
XRP Surges Amid Growing Institutional Interest
XRP saw significant price action recently, surging past the $3 mark during the September 9–10 trading session. This surge was largely fueled by increasing institutional interest and growing regulatory clarity in Europe.
Ripple’s expanded partnership with BBVA, which is compliant with the European Union’s MiCA regulations, has sparked optimism that traditional banks may begin adopting blockchain settlement solutions more widely. This partnership marks a notable step toward bridging the gap between crypto and traditional financial institutions.
Despite this surge, analysts caution that rising exchange reserves could dampen XRP’s momentum. With exchange reserves for XRP reaching 12-month highs, there is potential for distribution pressure, which may hinder sustained upside momentum, even though the market remains bullish.
