XRP, Solana, And Cardano Hit With SEC Withdrawals – What This Means For ETFs

Journalist Eleanor Terrett has revealed that the SEC has requested that XRP, Solana, and Cardano ETF issuers withdraw their 19b-4 filings. This follows the commission’s approval of the generic listing standards, under which it plans to approve these funds. 

SEC Asks XRP, Solana, Cardano ETF Issuers To Withdraw 19b-4 Filings

Terrett revealed in an X post that the SEC has asked issuers of XRP, Solana, Cardano, Litecoin, and Dogecoin to withdraw their 19b-4 filings. She explained that this follows the approval of the generic listing standards, which replace the need for these filings. The journalist added that withdrawals could start happening as soon as this week. 

The journalist provided more context, noting that the withdrawal is not a bad thing. She stated that when the SEC approved the generic listing standards, it eliminated the need for exchanges to file 19b-4 forms to list and trade shares of crypto ETFs, thereby streamlining the process. The SEC usually had a 240-day window to approve these proposed rule changes. However, under the generic listing standards, approvals can be obtained within 75 days. 

Terrett further remarked that the SEC’s request to withdraw the 19b-4 filings for the XRP, Solana, and Cardano ETFs signals that the new process is working as intended. She added that as long as the tokens meet the existing criteria, the SEC can approve a crypto ETF at any time with just the S-1 filing. Meanwhile, the SEC could technically decide on these funds at any time now. 

The final deadlines for these XRP, Solana, and Cardano funds were set for this month. The SEC was meant to decide on the SOL ETFs by October 10. Meanwhile, the final deadline for the XRP and Dogecoin ETFs comes up on October 18. Bloomberg analyst James Seyffart said that it is impossible to know exactly when the SEC will approve the S-1s. He added that the delay won’t be in the days required by simply when the Division of Corporation Finance signs off on them. 

Government Shutdown To Delay Crypto ETF Approvals

Market expert Nate Geraci stated that the prolonged government shutdown would impact the launch of new spot crypto ETFs, including those for XRP, Solana, and Dogecoin. He added that the ‘ETF Cryptober’ might be on hold for a bit. The U.S. government had shut down on October 1 following the Senate’s failure to pass a temporary funding bill. 

Notably, Geraci alluded to an SEC document that suggested the SEC would not approve the XRP, Solana, and Dogecoin ETFs while the government shutdown is in place. The commission stated that it will not review or approve self-regulatory organization rule changes, nor will it review or accelerate the effectiveness of registration statements, which applies to the crypto ETFs.