SEC Delays iShares and Grayscale Crypto ETF Rulings

The Securities and Exchange Commission announced Tuesday it would delay decisions on three cryptocurrency ETFs, including the iShares Bitcoin Trust (IBIT), pushing the timeline for potential approvals into the second half of 2025.

According to SEC filings released May 13, the regulator opened formal review processes to evaluate Nasdaq's proposed rule change that would allow in-kind transfers for IBIT. Similar reviews were announced for NYSE Arca's proposals to list and trade shares of the Grayscale Litecoin Trust and Grayscale Solana Trust.

The delays come as the industry awaits the impact of newly confirmed SEC Chairman Paul Atkins, who has shown a more accommodative approach to digital assets than his predecessor. These delays suggest major crypto decisions will likely be concentrated in the latter part of 2025, giving the new leadership time to establish its regulatory framework.

These latest proceedings focus on expanding cryptocurrency investment options. The iShares Bitcoin proposal would allow the trust to accept actual Bitcoin instead of cash during the creation process, according to the SEC filing. Meanwhile, the Grayscale proposals would seek to create the first U.S.-listed exchange-traded products for the Litecoin and Solana cryptocurrencies.

New SEC Leadership Reshapes Crypto Landscape

The delayed decisions reflect a transitional period at the SEC. Atkins, confirmed by the Senate in April as the new SEC chairman, has been vocal about his crypto-friendly stance. In his first public remarks as chairman, Atkins stated, "Market participants engaging in this technology deserve clear regulatory rules of the road," according to Reuters, marking a shift from the agency's previous approach.

During his confirmation process, Atkins pledged to establish a comprehensive regulatory framework for digital assets that would both foster innovation and protect investors, as reported by Axios. This contrasts with former Chairman Gary Gensler's enforcement-heavy approach that targeted numerous crypto companies with lawsuits.

The agency has already started to shift its regulatory stance under the Trump administration. In January, the SEC established a new crypto task force led by Commissioner Hester Peirce, who has long advocated for clearer rules governing digital assets, according to the SEC. The task force aims to develop a coherent regulatory framework rather than relying on enforcement actions.

"The Commission is opening a formal review process to determine whether the proposed rule change should be approved or disapproved," the SEC noted in each of the three filings. The agency encouraged interested parties to provide written submissions regarding the proposals.

The commission has set a 21-day comment period for each proposal, with an additional 14 days for rebuttals. Final decisions on these applications will likely come during the third quarter of 2025.