SEC Postpones DOGE and XRP ETF Decision! What is Going On?

The U.S. Securities and Exchange Commission (SEC) has caused quite a stir in the crypto world. On May 21, 2025, the SEC announced it would delay its decision on the proposed ETFs for XRP and Dogecoin (DOGE). 

This announcement has sparked curiosity, confusion, and concern, particularly among institutional investors who were hoping for a clear decision. But what does this delay really mean for the future of these cryptocurrencies? Let's dive into what's going on with DOGE and XRP, and why the SEC's decision is crucial for the entire crypto market.

Read also : SEC Delays DOGE and XRP ETF Decision Until June! Does This Mean the Bull Market Will Happen Then?

What is the SEC's Role in Crypto ETF Decisions?

The SEC’s job is to oversee and regulate securities in the U.S., ensuring they meet all legal and policy standards before being allowed for public trading. When it comes to cryptocurrencies like XRP and DOGE, the SEC has historically taken a cautious approach, given the volatility and evolving nature of digital assets.

In May 2025, the SEC announced it was delaying its decision on whether to approve XRP and DOGE ETFs proposed by 21Shares and Grayscale. The purpose of the delay is to seek public comments and further assess the legal and policy matters surrounding these financial products. 

In short, the SEC is gathering more feedback before it gives the green light or raises concerns about these crypto assets entering the traditional financial system in an exchange-traded format.

The delay could stretch the timeline for a final decision until July 2025, leaving investors uncertain about the next steps for XRP and DOGE.

Why is This Delay Impacting the Market?

When the SEC makes decisions about crypto ETFs, it can have a significant impact on the price and institutional interest in the associated cryptocurrencies. In the past, the approval of ETFs for digital assets has led to price spikes and increased trading volumes. 

This is because ETFs offer a regulated way for institutional investors to get involved in cryptocurrencies without directly holding the assets themselves.

The proposed XRP and DOGE ETFs could bring billions in institutional capital to these tokens, which is why the delay is being closely watched. XRP is already a major player in the crypto space with a market cap of $137.99 billion, and DOGE has amassed a huge following, especially due to its meme origins and celebrity endorsements. 

If approved, these ETFs could help bring more credibility and market support to these cryptocurrencies, making them more accessible to a broader range of investors.

However, with the SEC’s decision postponed, institutional investors are left in limbo. The delay might cause some hesitation, as investors wait for regulatory clarity before committing to these assets.

What Are the Key Factors Behind the SEC’s Postponement?

The delay in the XRP and DOGE ETF decisions can be attributed to several factors. First, the SEC is considering legal and policy matters surrounding digital assets, especially their classification as securities. The regulatory framework for crypto is still evolving, and the SEC needs to ensure that these ETFs comply with all necessary regulations.

Additionally, the SEC has emphasized the importance of a public comment process. This allows industry participants, investors, and legal experts to provide input on the potential risks and benefits of introducing crypto ETFs. The SEC wants to ensure that any decisions made are well-informed and consider the long-term impact on the broader financial market.

As the public comment process is ongoing, the SEC is likely to weigh the opinions of both supporters and critics of crypto ETFs. This could include concerns about market volatility, the lack of transparency in crypto projects, and the potential for pump-and-dump schemes.

How Does This Affect XRP and DOGE?

The impact of the delay on XRP and DOGE is significant. XRP, which has seen substantial growth in recent years, faces a dip in investor sentiment due to this uncertainty. Currently trading around $2.35, XRP has experienced a drop in price, showing an 18.17% decrease in the last 24 hours. While the delay may cause a short-term dip, approval of the ETF could lead to a long-term increase in value.

Similarly, DOGE, the meme-inspired token, is also feeling the effects of the delay. As a popular cryptocurrency that surged in value with the help of social media and celebrity endorsements, DOGE has become a speculative investment. Its future prospects heavily rely on how the market reacts to the regulatory landscape. The SEC's decision could either validate DOGE as a legitimate asset or increase skepticism, depending on the final ruling.

Investors are now anxiously waiting for July to get more clarity. The market is holding its breath, and many are speculating on the possible outcomes.

What Does This Mean for the Crypto Market?

This delay could have a ripple effect across the entire crypto ecosystem. Institutional investors, who have been increasingly entering the market, often use regulated ETFs as a safe and easy way to gain exposure to digital assets. With XRP and DOGE on hold, these investors may shift their focus to other cryptocurrencies that already have ETF products available or are closer to approval.

However, this delay may also open up more opportunities for other blockchain projects to gain attention. Investors might start looking for alternatives to DOGE and XRP, especially those with strong fundamentals, clear use cases, and existing regulatory approval.

Read also : Trump Appoints Ex-SEC Chairman on the XRP Lawsuit! What Does This Mean for Ripple?

Conclusion: What’s Next for XRP, DOGE, and the Crypto Market?

In conclusion, the SEC's decision to postpone the approval of XRP and DOGE ETFs has created uncertainty in the crypto market. While this delay may temporarily halt institutional investments, it also opens the door for public input and further legal reviews. The outcome of this process could have a significant impact on the price and perception of these cryptocurrencies.

For XRP and DOGE holders, the next few months will be crucial as the SEC works through the complexities of approving crypto ETFs. The potential for growth remains, but investors must be patient and watch for updates in July. As always, when it comes to crypto, it’s essential to stay informed and stay flexible as the market continues to evolve.

Explore expert insights, in-depth articles, and the latest crypto market trends on Bitrue blog. Stay informed and ahead in your crypto journey. Register now on Bitrue and take the next step!

FAQ

Why did the SEC delay the decision on XRP and DOGE ETFs?

The SEC delayed the decision to gather public input and review legal and policy matters related to these cryptocurrencies before granting approval.

How will the delay affect XRP and DOGE prices?

The delay may cause short-term volatility and hesitation among institutional investors. However, the approval of the ETFs could lead to long-term growth and increased market interest.

When will the SEC make a final decision on XRP and DOGE ETFs?

The SEC may make its final decision by July 2025, depending on the outcome of the public comment process and further legal assessments.