Crypto ETF Approvals Unlikely Before New SEC Chair Takes Office

President Donald Trump selected Paul Atkins to head the agency, but a confirmation hearing has not yet been scheduled.

Key Points:

• The SEC postponed decisions on several spot crypto exchange-traded fund (ETF) applications on Tuesday.
• Approval or rejection of these applications is unlikely before Paul Atkins, President Donald Trump’s nominee to lead the agency, is confirmed by Congress, according to two sources.

Paul Atkins, Donald Trump's nominee for SEC chair, on the left

Despite the SEC's recent acknowledgment of several spot crypto ETF applications, the agency is unlikely to approve any until its leadership is finalized.

"I would have been very surprised if they approved any of these filings before [Paul] Atkins was confirmed at their first deadlines," said James Seyffart, an ETF analyst at Bloomberg Intelligence. "Our assumption has been that anything that can be delayed until Atkins officially takes over at the SEC will be pushed back."

A source familiar with the matter echoed this sentiment, noting that while this administration has shown a willingness to break precedent, an early approval remains unlikely. "I’d be surprised, but you never know," the source added.

President Donald Trump has nominated former SEC commissioner and current CEO of Patomak Global Partners, Paul Atkins, to lead the agency. Former SEC Chair Gary Gensler resigned in January ahead of Trump’s inauguration. However, Atkins has yet to receive a scheduled confirmation hearing.

On Tuesday, the SEC delayed decisions on several spot crypto ETF applications, including those for XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). While the move wasn’t entirely expected, ETF analyst James Seyffart noted it wasn’t surprising either.

It took issuers years to gain approval for spot Bitcoin (BTC) and Ether (ETH) ETFs, despite both assets having well-established regulated futures markets—an important, though not legally required, factor in the SEC’s previous decisions. None of the currently pending ETF applications meet this criterion.

Still, Seyffart and his colleagues estimate a 65% or higher chance of approval for several altcoin ETFs by the end of the year. While applications with deadlines in May and June may have a better shot at approval, the final decision largely hinges on the confirmation of the new SEC chair.

Historically, the SEC has used procedural extensions to delay spot Bitcoin and Ether ETF applications for close to 240 days—the maximum review period before issuing a final decision.

"Theoretically, we should have a chair by then, but that doesn’t guarantee these approvals will happen immediately," said James Seyffart. "It’s certainly more possible than at the March and April deadlines for these various spot crypto assets."