SEC Delays Polkadot ETF Verdict—Seeks Public Feedback in Latest Crypto Regulatory Limbo

The SEC hits pause on Polkadot's ETF fate—kicking the can down the road with a call for 'more comments.' Classic bureaucratic foot-dragging or prudent due diligence? You decide.

Regulators tap the brakes

No greenlight yet for the DOT-backed fund. The Commission's move signals another round of scrutiny for crypto investment vehicles—because nothing says 'innovation' like a 12-month review cycle.

Wall Street's crypto FOMO meets government speed

While traders clamor for Polkadot exposure, the SEC's deliberate pace highlights the growing rift between decentralized finance and traditional market structures. Just don't mention the $50B in crypto ETFs already trading elsewhere.

The closer: Another day, another deferred crypto dream. But hey—those comment sections aren't going to fill themselves.

SEC pushes Polkadot ETF decision forward for ‘more comments’

The SEC stated that on May 8, 2025, the Commission exercised its authority under Section 19(b)(2) of the Securities Exchange Act of 1934 to designate a longer period for reviewing the proposal. 

Under this provision, the SEC is permitted to take up to 240 days from the date of publication to approve, disapprove, or institute proceedings on the proposed rule change.

The new deadline for a final decision has now been set for July 26, 2025. As of now, no public comments have been submitted regarding the proposed Polkadot ETF, according to a release cited in the SEC’s filing.

The Switzerland-based crypto asset manager has applied for several exchange-traded fund applications over the course of 2025. 21Shares has submitted spot crypto ETFs proposals for assets like solana and Chainlink.

In March 2025, the SEC also acknowledged the filing of a 21Shares application for a Solana-based ETF. That acknowledgment kicked off the 45-day review period typically granted under SEC rules. 

The initial countdown began earlier this year, but the regulator has yet to approve or deny the application, leaving the door open for further extensions.

Similarly, the firm collaborated with Ark Invest for a Bitcoin ETF that was officially approved earlier this year.

Each filing now appears to be moving through the regulatory pipeline at a measured pace. The SEC has shown a willingness to engage, but continues to invoke procedural delays allowed under its legal mandate.

XRP ETF also delayed for similar reasons

The SEC’s handling of the 21Shares Polkadot Trust application adds to the statements of delay the financial regulator has made this year, on multiple crypto ETF proposals.

In late May, the Commission postponed its decision on two separate applications submitted by Grayscale Investments and Bitwise for a spot XRP ETF. 

Bloomberg ETF analyst James Seyffart said the SEC’s delays were “expected,” noting that “the SEC takes the full time to respond to a 19b-4 filing.” He added that “an early decision WOULD be ‘out of the norm,’ as almost all the submissions had a review deadline in October.

“No matter how crypto-friendly this SEC is. There’s no conspiracy here,” Seyffart wrote on X.

Like the Polkadot ETF, the SEC invoked its authority to extend the review period, stating that additional time was needed to consider the application more thoroughly. A final decision could now be pushed as far as mid-October, depending on how many extensions are used.

Asset management giant Franklin Templeton also submitted a filing for a spot XRP ETF just days after the SEC made its announcement on Bitwise and Grayscale.

Market analysts are optimistic about the outcome for many of the pending crypto ETF applications. Bloomberg’s Seyffart and Eric Balchunas raised their approval odds last Friday for several spot crypto ETFs to 90% or higher. 

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