SEC Seeks Public Input on Franklin Templeton ETFs

The U.S. Securities and Exchange Commission (SEC) has initiated a public comment period regarding asset manager Franklin Templeton’s proposed exchange-traded funds (ETFs) for trading on two cryptocurrency exchanges associated with the Chicago Board Options BZX Exchange.

In separate filings made on Tuesday, the SEC indicated that U.S. exchanges could potentially allow the listing and trading of the Franklin XRP ETF and Franklin Solana ETF. A proposal for a rule change was submitted to the SEC by the CBOE BZX Exchange back in March, which led to a delay from regulators in April and extended the decision deadline to Tuesday.

“The litigation agency has not demonstrated that a resolution has been reached on the relevant issues,” the SEC noted in both submissions. “In fact, the agency is actively encouraging and seeking comments from interested parties regarding the proposed rule changes.”

Once the SEC notice is published in the Federal Register, it will set timelines and dictate whether a decision on the Franklin Templeton ETF will be made by the 35th of the month. While U.S. regulators have approved spot investment vehicles for Bitcoin (BTC) and Ether (ETH), the approval for tokens like XRP, Solana (SOL), and others remains pending for many companies.

Changes at the SEC with Atkins as Chair?

Numerous asset managers, including BitWise, ProShares, and 21Shares, have submitted applications to the SEC for the listing and trading of investment products tied to SOL or XRP. The SEC’s approach has shifted under the leadership of Chair Paul Atkins, as the agency has moved away from the regulatory framework established during the Trump administration, which included strict enforcement actions against cryptocurrency firms.

It’s uncertain whether the current regulatory stance can extend to ETFs linked to XRP or Solana, despite hints from the previous administration about incorporating both assets into a U.S. cryptocurrency strategy.