SEC Halts XRP and DOGE ETF Launches: Key Differences from Bitcoin and Ethereum Products Revealed

SEC Puts Brakes on Meme Coin ETFs—What's Really Going On?

Regulatory Roadblock

The Securities and Exchange Commission just slammed the door on XRP and Dogecoin exchange-traded funds—delaying their rollout indefinitely while Bitcoin and Ethereum products trade freely. No official numbers disclosed, but insiders confirm the rejection notices hit desks this morning.

Structural Divide

Unlike established crypto giants, these altcoins face heightened scrutiny over decentralization claims and market manipulation risks. Regulators question whether meme-driven assets meet traditional fund standards—creating a compliance chasm that BTC and ETH already crossed.

Wall Street's Selective Embrace

Traditional finance happily profits from Bitcoin's legitimacy while treating altcoins like speculative toys—another case of bankers cherry-picking innovation when it suits their balance sheets. The delay reinforces how regulatory gatekeepers protect legacy players under the guise of investor protection.

SEC Extends XRP ETF Deadlines as DOGE Fund Faces Short Delay

On September 10, the SEC extended its review of the Franklin XRP ETF, moving the final decision deadline from September 15 to November 14, 2025. The regulator cited the need for more time to evaluate comments and potential risks.

It marks the second extension since the product was first filed in March, leaving 15 XRP ETF applications in limbo. However, even with the delay, bettors on Polymarket have assigned more than a 90% chance of approval by year-end, suggesting that investors are still confident Ripple will secure its own ETF before 2025 is done.

While XRP awaits clarity, attention has shifted to Dogecoin. According to Bloomberg ETF analyst Eric Balchunas, the Rex-Osprey Doge ETF (DOJE), initially meant to hit the market on September 12, is now scheduled to launch mid-next week, likely September 18.

Recent data from Santiment shows whales have been accumulating the OG meme coin in anticipation of the ETF, with holdings by wallets containing between one and ten million DOGE reaching a four-year high.

Different Structures, Different Outcomes

The SEC’s approach highlights a key divide in how crypto ETFs reach the market. For example, spot Bitcoin and Ethereum ETFs are organized as grantor trusts under the Securities Act of 1933. This ‘33 Act framework is now the industry standard for physically backed crypto products, but it involves a lengthy review process that includes a formal comment period.

Meanwhile, according to industry expert James Seyffart, the Dogecoin product is structured under the Investment Company Act of 1940, allowing it to use a unique framework as a Registered Investment Company (RIC), which is different from the standard setup used by the more established crypto ETFs.

Its strategy involves gaining spot market exposure through a Cayman Islands subsidiary, a legal innovation designed to help bypass regulatory constraints. This alternative arrangement can allow for faster time-to-market and different operational mechanics, such as the ability to hold derivatives alongside spot assets.

The regulatory arbitrage explains why a fund for Dogecoin, an asset originally created as a joke, might trade in the U.S. before one for XRP, which has a more developed ecosystem and legal precedent.

cryptopotato.com