- SEC slows decisions about the cardano and avalanche ETF requests from Grayscale until July 15.
- The prices of ADA and Avax rise despite the uncertainty of the regulations and deferred ETF approvals.
Since Paul Atkins took over as a SEC chairman, the US Securities and Exchange Commission (SEC) has adopted a noticeably more open attitude towards the cryptocurrency sector.
This meant a deviation from the stricter approach of former chairman Gary Genler.
Although this shift has caused optimism in the landscape of digital assets, it has not eliminated all regulatory obstacles.
SEC slows the two ETF proposals from Grayscale
The SEC recently has delayed The statement about Grayscale’s Spot ETF requests for Cardano [ADA] and avalanche [AVAX] Once more.
Despite the extension, the total evaluation period remains set at 240 days, with a final opinion that is expected by October 22, 2025.
The sec noticed,
“The committee finds it appropriate to indicate a longer period within which the proposed change of rule can take action, so that it has sufficient time to consider the proposed change of rule and the issues issued therein.”
What is behind the delay?
Grayscale has submitted the proposal to summarize and trades shares of the Avalanche Trust on 27 March and to trade from the Avalanche Trust, and the public could offer input from 16 February.
The SEC initially intended to decide by 31 May, so that the 45-day assessment period was terminated.
However, in order to perform a more thorough analysis and to carefully consider public comments, the Commission has expanded the Deadline to July 15.
With this extra time, supervisors can evaluate all aspects of the application, including potential risks, before they decide whether they should approve, reject or initiate further procedures.
Market sentiment remains strong
Despite the delays of the regulations, the market sentiment around Cardano and Avalanche remains resilient.
At the time of writing, Ada was trade for $ 0.7524, as a result of a modest profit of 0.60% in the last 24 hours, while Avax has climbed with 2.41% to reach $ 23.77.
Meanwhile, on PolymarketThe chance of cardano’s spot ETF approval is estimated at 67%, although currently no comparable prediction data is available for Avalanche.
This development comes shortly after the SEC also postponed its decision on the proposed XRP and Doge Spot ETFS of Grayscale on 20 May, which emphasizes a broader trend of careful investigation by the committee on several crypto-based investment products.