SEC Postpones Decision on Ether Staking and XRP Spot ETFs
Sam Rivera
May 22, 2025
“In a surprise move, the SEC has kicked its Ether staking and XRP spot ETF rulings down the road—leaving investors in limbo and fueling fresh debate over regulatory clarity.”
Overview of Delay
On May 21, the Securities and Exchange Commission announced it would again delay decisions on multiple high-profile filings: applications for a spot Ether staking ETF and several XRP spot ETFs from major issuers. Originally slated for a ruling this week, the SEC cited “additional time” needed to assess market safeguards and custody arrangements—a phrase that has become all too familiar for crypto investors.
The extensions push final determinations to late Q3 2025, prolonging uncertainty for asset managers and retail participants alike. With the SEC already deferring these matters multiple times, this latest move raises questions about its internal workload and the agency’s evolving interpretation of digital asset statutes.
Regulatory Background
The journey toward a U.S. spot Ethereum ETF began with applications from powerhouse asset managers earlier this year. Proponents argue that a regulated vehicle would offer cleaner on-ramp liquidity and improved transparency for ETH holders. Meanwhile, XRP issuers like Grayscale and WisdomTree filed analogous requests to launch spot ETFs, despite ongoing litigation between Ripple and the SEC.
To date, the SEC has approved multiple Bitcoin spot ETFs since January 2025, citing robust surveillance-sharing agreements with exchanges like Nasdaq and CBOE. However, the agency has maintained a cautious stance on anything that might resemble interest-bearing products—like ETH staking—and on tokens still under enforcement scrutiny, such as XRP.
Impact on Ether Staking
Ether staking ETFs propose to pool client ETH, delegate it to proof-of-stake networks, and distribute rewards after deducting fees. The SEC has repeatedly flagged concerns over custody—how staked ETH could be held securely—and the nature of yield, which it views as an unregistered security in prior letters.
Following this latest delay, traders saw the ETH staking yield market fragment: Lido’s stETH traded at a 1.8% discount to ETH, up from 0.6% pre-announcement. On Binance, the ETH futures curve inverted slightly, reflecting doubts about regulatory rollout timelines. Investors hoping for a regulated, taxable ETF structure must now wait until September 30, 2025, for the SEC’s review.
XRP Spot ETF Implications
XRP issuers face an even steeper climb. Although Ripple secured a partial court victory in December 2024—clarifying that XRP is not inherently a security—ETF hopefuls must still satisfy the SEC’s surveillance-sharing and anti-fraud conditions. The delay suggests the agency is scrutinizing whether platforms trading XRP possess adequate market integrity provisions.
Market watchers note that the prospect of an XRP ETF already boosted the token’s price by 12% in April 2025. Since the announcement, XRP has pared gains to sit 5% above pre-delay levels, imparting a sense of cautious optimism among speculators.
Market Reaction
Equity markets dipped modestly on the news; the S&P 500 fell 0.4%, while crypto-linked equities—like Coinbase Global (COIN)—declined 3.1%. In contrast, Bitcoin and Ethereum held steady within 2% of pre-announcement levels, indicating that investors view the SEC’s action as a procedural bump rather than a systemic setback.
Options markets saw a surge in ETH call buying, with open interest for June expiry jumping 18%. That suggests some traders are betting on a delayed but inevitable approval, rather than outright rejection.
Expert Commentary
“The SEC appears determined to iron out every operational detail,” says Jane Williams, partner at blockchain law firm FinReg Advisors. “They want custodians to be bulletproof, and they’re still uncertain how staking rewards fit within securities law.”
Bloomberg ETF analyst Eric Balchunas adds, “Delays are frustrating, but approvals feel 80% likely given the agency’s desire not to be left behind global peers. The question is when, not if.”
Technical Analysis
From a charting standpoint, ETH’s 20-day moving average support at $3,450 held firm despite the sell-off, suggesting buyers are stepping in. XRP’s ascending triangle pattern remains intact, with key resistance at $1.15. A breakout above that level—combined with renewed ETF optimism—could target $1.30 by Q4 2025.
What’s Next
With the new September 30 deadline looming, asset managers will double down on their surveillance-sharing agreements and audit capabilities. In parallel, industry groups plan to lobby for clearer SEC guidelines on digital asset yield products—hoping to prevent future standoffs.
For now, investors can hedge with ETH calls or maintain exposure to liquid staking tokens, but all eyes remain on the SEC docket. When that final vote arrives, it could define U.S. crypto regulation for years to come.