- The SEC has postponed its decision on VanEck and WisdomTree’s in-kind Bitcoin and Ethereum ETF proposals.
- Ripple’s XRP case and Binance’s litigation have both been paused, suggesting potential settlements.
- Grayscale’s Ether staking ETF decision is also delayed, with the SEC’s next move expected by June 1, 2025.
The US Securities and Exchange Commission (SEC) pushed back decision deadlines for key rule changes impacting spot crypto ETFs, extending its review period to early June 2025.
The delay affects proposed rules for VanEck’s Bitcoin and Ethereum Trusts and a similar WisdomTree request regarding in-kind creations and redemptions, as reported by former FOX Business journalist Eleanor Terrett.
Notably, these ETF rule delays occurred at the same time the agency also paused proceedings in its high-profile lawsuits against both Ripple and Binance.
What Are In-Kind Creations/Redemptions & Why Do They Matter?
An “in-kind” model lets spot Bitcoin (BTC) and Ethereum (ETH) ETFs directly handle the underlying crypto assets when creating or redeeming shares, avoiding forced cash conversions.
This structure, favored by industry insiders, can minimize taxable events and boost liquidity and price stability—two key elements for institutional adoption.
The proposed rule change was originally published on March 5, 2025, and the standard 45-day review period was set to expire on April 19. The SEC’s decision deadline on this rule for VanEck and WisdomTree is now June 3, 2025.
Grayscale’s ETH Staking Proposal Also on Hold
The SEC also delayed its decision on allowing Ether staking features within Grayscale’s proposed Ethereum Trust ETFs.
Related: SEC Actions Across Binance, Ripple Suggest Coordinated Resolution Push
The decision deadline for that filing has been moved to June 1, 2025. Staking could add yield-generation functionality to ETFs, which many believe would increase their appeal to investors.
Why Are SEC Lawsuits Against Ripple & Binance Also Paused?
The timing of the ETF delays aligns with pauses in major SEC enforcement actions. The SEC and Ripple agreed to suspend their appeals in the XRP case, signaling a potential settlement.
The April 10 filing hints that the Commission may drop the case altogether once Paul Atkins—reportedly the next SEC Chair—takes office. Ripple’s April 16 deadline to respond to the SEC’s brief has also been canceled.
Related: Reading Between the Lines of Ripple/SEC’s Joint Request to Halt Case
Simultaneously, the SEC and Binance have jointly requested a second 60-day pause in their legal proceedings. Both parties cited “productive discussions” and ongoing crypto task force evaluations.
What Might These Combined SEC Pauses Signal?
This pattern – delaying significant ETF rule decisions while also pausing major enforcement lawsuits – suggests more than just routine procedure.
While the agency appears cautious about approving sweeping changes like in-kind redemptions and staking, pausing the legal battles shows a more open stance under new leadership.
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