In a recent XRP news update, the Securities and Exchange Commission (SEC) has delayed its decision on the proposed XRP spot Exchange-Traded Fund (ETF) from Franklin Templeton. Despite the delay, legal experts watching the Ripple case are staying positive.
According to XRP lawyer Bill Morgan, the delay in the Ripple ETF approval process does not indicate a change in the overall direction of the case. Morgan pointed out that the SEC commissioners have not yet voted to end the appeal against Ripple, and no formal updates have been made to the final court orders.
Morgan emphasized, “What is the hurry? The SEC commissioners have not even voted yet to end the appeal against Ripple.” He added that although there has been mention of a settlement agreement, no joint court filing has been made to officially reflect those changes.
Another legal observer, James Farrell, highlighted that the only statement from the SEC so far is a filing noting an “agreement in principle” between Ripple and SEC staff, which is not final. This has led to confusion and speculation about the next steps, but legal analysts suggest that this is not uncommon in complex regulatory matters.
SEC Postpones XRP ETF Decision Until June
The SEC announced that it would delay its decision on the Franklin Templeton XRP spot ETF until June 17, 2025. Franklin Templeton filed the application on March 13, and the SEC published it in the Federal Register on March 19, triggering a 45-day review period set to expire on May 3. Despite these setbacks, Proshares has announced a new launch date for its XRP ETFs despite prior confusion.
The delay aligns with what some industry analysts, including Bloomberg Intelligence’s James Seyffart, described as standard regulatory procedure in a March post. Seyffart noted,
“Yes, the SEC just punted on a bunch of altcoin ETF filings… This is expected.”
ETF Store President Nate Geraci confirmed that apart from the Ripple ETF, regulators also announced delays for other crypto ETFs, including Franklin’s Solana and Grayscale’s HBAR products. These delays reflect a broader evaluation process and do not specifically target XRP-related products.
However, Nate Geraci still expects the SEC to reach a decision by October 2025 because the commission tends to make its final decisions on many crypto ETFs in mid-October.
Is XRP Lawsuit and ETF Decision Linked?
Notably, other commentators have wondered whether the delay at the SEC is due to ongoing negotiations in the Ripple case. Clyde James, a crypto investor, said the SEC may have slowed on Ripple ETF approvals since the settlement demands penalties in Ripple rather than cash.
“If they are truly considering accepting settlement payment in XRP… they aren’t going to approve spot ETFs before that,” James wrote on social media. This is because approving the ETF beforehand could raise XRP’s price, which would lower the total XRP needed for payment.
Though still unconfirmed, this theory gained traction online—especially since Ripple has publicly stated that it reached a settlement agreement with the SEC, while the SEC has only acknowledged an agreement in principle.
Strategy, formerly MicroStrategy (MSTR), has announced plans to issue 2.5 million shares of 10% Series A Perpetual Stride Preferred Stock (STRD) to raise funds to expand its Bitcoin holdings and support working capital.
The company aims to raise approximately $250 million from this initial public offering (IPO), based on an initial liquidation preference of $100 per share. Meanwhile, other firms are also advancing Bitcoin treasury initiatives across the globe.
Strategy Plans Major IPO to Raise Funds for Bitcoin Expansion
According to Strategy’s official announcement, the offering targets institutional and select non-institutional investors. Holders are eligible for non-cumulative dividends, paid quarterly if declared, at a 10% annual rate.
“Strategy will have the right, at its election, to redeem all, but not less than all, of the STRD Stock, at any time, for cash if the total number of shares of all STRD Stock then outstanding is less than 25% of the total number of shares of STRD Stock originally issued in the offering and in any future offering, taken together,” the statement read.
The offering plan follows Strategy’s latest acquisition of 705 BTC for around $75.1 million yesterday. SaylorTracker data shows that the firm holds 580,955 BTC, valued at over $60 billion.
Strategy’s move comes amid a wave of corporate cryptocurrency adoption. On June 2, Hong Kong-based Reitar Logtech Holdings Limited (RITR), a logistics solutions provider, revealed that it is in advanced negotiations to create a strategic Bitcoin treasury. The initiative aims to purchase up to 15,000 BTC, valued at approximately $1.5 billion.
“Management believes this treasury diversification could provide several strategic benefits including enhanced financial resilience through allocation to a non-correlated digital asset, increased financial flexibility for future strategic acquisitions in logistics technology and automation platforms, and positioning for expansion in high-growth Asian markets where demand for smart logistics infrastructure continues to increase,” the filing read.
Similarly, the Norwegian Block Exchange (NBX) made history as Norway’s first listed company to adopt Bitcoin as a treasury asset. The company has acquired 6 Bitcoin and aims to raise its holdings to 10 BTC by June.
In Russia, Sberbank, the country’s largest bank, launched structured bonds tied to Bitcoin. This product is available to a limited group of qualified investors in the over-the-counter market.
“Ethereum remains at the core of our blockchain infrastructure strategy. Our expanding ETH position is not simply a treasury play-it’s a strategic byproduct of our NodeOps and high-growth Builder+ activities. We are focused on building highly scalable, revenue-generating infrastructure,” CEO Charles Allen said.
Now, it has entered into an agreement to issue up to $500 million in senior secured convertible notes, with an initial $11 million funding set to close soon. A significant portion of the proceeds, up to 80%, will be allocated to purchasing SOL.
According to Johnny Garcia, Managing Director of Institutional Growth and Capital Markets at the VeChain Foundation, Texas will likely become the next state to establish a strategic Bitcoin reserve after New Hampshire.
In an exclusive interview with BeInCrypto, Garcia explained that states with pro-innovation leadership are more inclined to follow New Hampshire’s example. Meanwhile, others may adopt a more cautious, wait-and-see approach.
Why States Like Texas Are More Likely to Follow New Hampshire’s Bitcoin Reserve Lead
The VeChain executive described New Hampshire’s passage of House Bill 302 as a ‘landmark moment’ for digital assets. He stated that the development highlights Bitcoin’s growing recognition as a strategic financial instrument.
It also lays the groundwork to encourage wider blockchain adoption by normalizing digital assets in public portfolios.
“Momentum has been gathering at the State level since the presidential inauguration, and have commented before, there is a sea change taking place in the minds of State representatives across the general perception of Bitcoin [and other crypto assets] in the US,” Garcia told BeInCrypto.
Importantly, he believes the move could prompt the states already considering related legislation to accelerate their efforts so they don’t fall behind. The latest data from Bitcoin Laws shows that as of May 2025, 37 digital asset-related bills are active in 20 states.
Live Bitcoin Reserve Bills Across 20 States. Source: Bitcoin Laws
However, Garcia emphasized that the success of these bills depends on various factors. These include a state’s political climate, economic priorities, and risk tolerance.
“States with pro-innovation leadership, like Texas or Utah, are more likely to follow New Hampshire’s lead in short order, while others may wait to see how things play out for N.H,” he added.
With Texas now in the spotlight, there is strong optimism that similar legislation will be signed into law. Republican Governor Greg Abbott has expressed a favorable outlook toward the industry. The Texas Legislative session ends on June 2, so the decision could come any day now.
This trend highlights a clear difference of opinion between Democrats and Republicans regarding investments in digital asset reserves, a divide Garcia also acknowledges.
“These differences are nothing new, and I chalk them up to deeper-rooted perspectives, just like there are conservatives and liberals, or risk takers and those who like to play things safe. Some may try to tease out those groups and label people on one side as Democratic and the other as Republican, but I think that is too simplistic,” he said.
He acknowledged that bridging this gap poses a significant, but surmountable, challenge. The executive noted that increased cooperation can be fostered through education and a deeper understanding of the technology’s potential benefits and risks.
According to Garcia, the focus should be on identifying shared goals, such as leveraging blockchain to improve efficiency and transparency in government operations—an approach that could lay the groundwork for bipartisan collaboration.
“The ultimate goal would be to develop a thoughtful and balanced approach to digital assets that can benefit all Americans, regardless of political affiliation. This can be achieved by moving the conversation beyond partisan lines and focusing on the long-term economic and technological implications,” Garcia disclosed to BeInCrypto.
How Will State-Level Interest Impact Broader Crypto Adoption?
Whether Democrats and Republicans will ever fully agree on digital assets remains uncertain. Despite this, the introduction of bills and increased discussions at the state level signal growing interest and momentum.
Garcia said this shift marks a fundamental change in how public finance views blockchain assets, recognizing them as tools for innovation and resilience.
“It, combined with the strength of Bitcoin, has rekindled the discussion around ‘digital gold’ and could help reshape public finance by introducing decentralized, censorship-resistant assets into traditional portfolios,” he commented.
It normalizes digital assets as a strategic asset class, not just speculative. This encourages more institutional and enterprise participation.
This also pushes policymakers and the public to better understand digital assets’ risks and benefits, which can lead to clearer and better regulations.
It helps build infrastructure like regulated custody and on-chain auditability. This makes blockchain adoption easier for businesses.
He also said that while accessibility remains a challenge for mainstream adoption, state-backed initiatives could foster partnerships between the public and private sectors. This collaboration could lead to the development of user-friendly wallets, custody services, and decentralized finance platforms, expanding access for both retail and institutional users.
“This aligns with our focus at VeChain on scalable, enterprise-grade blockchain solutions, and we anticipate that state-level adoption will create a ripple effect, accelerating the integration of digital assets into both public and private sectors,” Garcia remarked.
The Balance Between Opportunity and Risk in State Crypto Holdings
While the benefits inspire optimism, the reserves carry several implications for a common taxpayer. Garcia explained that supporters believe state investments could boost long-term returns and diversify away from inflation-prone assets, potentially strengthening the state’s finances and benefiting taxpayers. Yet, he claimed,
“We have not yet reached the point where Bitcoin has achieved a greater level of stability, and if it sees a similar pullback compared to previous cycles, that would greatly diminish interest in setting up reserves and could cost taxpayers money.”
Garcia warned that significant price drops could lead to losses in the state’s reserves. Thus, if the allocation is too large or poorly managed, this could potentially threaten financial stability.
“This could, in theory, lead to pressure for tax policy changes to offset those losses, although this would depend heavily on the scale of the investment and the state’s overall financial health,” he mentioned to BeInCrypto.
Garcia advocated educating taxpayers about both the benefits and risks to maintain public trust. He emphasized that the long-term impact will depend on the responsible and strategic management of these reserves.
Beyond tax concerns, Garcia detailed several challenges states may face when implementing crypto reserves.
“The volatility of digital assets remains the biggest challenge facing states looking to implement reserves, as managing this volatility within a public treasury framework will require careful consideration and potentially sophisticated risk management strategies,” he commented.
Garcia also mentioned that educating lawmakers and the public is crucial for wider acceptance, as many state officials lack expertise in digital asset management and will need training or specialists. He underlined that federal regulatory uncertainty adds complexity. Therefore, clear rules on custody and reporting are necessary.
According to Garcia, transparency and strong cybersecurity measures are other key factors essential to ensuring the long-term success of these initiatives.
The Road to a National Strategic Bitcoin Reserve
Meanwhile, Garcia pointed out that concerns over taxes and market volatility are why President Trump’s Bitcoin reserve does not include provisions for investing the country’s funds. Instead, it focuses on using forfeited assets to build the stockpile.
The SBR would involve acquiring 1 million Bitcoins over five years and holding them for at least 20 years. Garcia declared that allowing direct Bitcoin investments would depend on shifting political and economic factors.
“Allowing for such purchases will require bipartisan support in both the House and the Senate, along with the President’s signature, but as the recent stall for the GENIUS Act shows, lawmakers are far from being on the same page,” the executive shared with BeInCrypto.
Garcia believes that a clear regulatory framework for crypto and a plan to incorporate Bitcoin into a strategic reserve will eventually be established by law. Nonetheless, the timeline and specific details of these bills remain ‘challenging to predict.’
Both XRP and Cardano are under pressure this week, with prices slipping despite recent positive developments. XRP is down over 4% in the last 24 hours, now hovering around $0.509, while Cardano (ADA) fell over 2%, currently trading at $0.555.
The dips come amid increased trading activity, suggesting traders are still engaged, but the sentiment remains cautious as institutional support continues to lag.
Grayscale Investments has updated its Top 20 crypto assets list for Q3, bringing in Avalanche (AVAX) and Morpho (MORPHO) based on factors like network activity, catalysts, and token valuation. But once again, XRP and ADA were left out, despite Ripple’s legal wins against the SEC and strong market optimism around both tokens.
Why the Exclusion Raises Questions
The crypto community has raised eyebrows over the continued exclusion of these major altcoins. Grayscale’s own XRP and Cardano trusts are awaiting ETF approval, suggesting the firm recognizes their potential. Yet, their omission from the latest portfolio suggests Grayscale is giving more weight to short-term momentum and valuation metrics.
Meanwhile, two Ethereum-based tokens, Lido DAO (LDO) and Optimism (OP), were dropped from the list due to weakening near-term fundamentals, even though they continue to lead in their sectors. Grayscale’s move appears to reflect a shift toward adoption-based criteria over long-term fundamentals.
XRP and Cardano Beating the Odds
XRP is gaining momentum with a series of major developments. Three XRP ETFs have recently launched in Canada, while in the U.S., asset manager Franklin Templeton has applied for an XRP ETF, which is now under SEC review. Ripple has also made headlines with a $1.25 billion acquisition of prime brokerage firm Hidden Road, signaling its expansion into institutional markets. Plus, the launch of Ripple’s RLUSD stablecoin on the XRP Ledger adds another layer of utility to the ecosystem, positioning XRP for stronger adoption ahead.
Meanwhile, Cardano is also riding a bullish wave. With over $100 million, ADA was recently converted to BTC and stablecoins to support DeFi growth, while its stablecoin market cap has surged 30%. Integration with the Brave browser has expanded Cardano’s reach to over 86 million users, and ETF optimism is rising, with analysts giving it a 55% approval chance.
Something is still not in Place…
Despite recent regulatory clarity, like the SEC conceding that certain staking activities aren’t securities, XRP and Cardano still can’t seem to win favor with large institutions. This is surprising given Bloomberg analysts place them among tokens with the highest ETF approval odds in a potential Trump-led SEC.
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FAQs
Why are XRP and Cardano still considered high potential despite Grayscale’s exclusion?
They are considered high potential due to strong ecosystem developments (e.g., XRP’s RLUSD stablecoin, Cardano’s DeFi growth), increasing global ETF approvals (Canada), and high analyst-projected U.S. ETF approval odds, indicating long-term value despite short-term institutional hesitancy.
What criteria does Grayscale use to select tokens for its Top 20 list?
Grayscale considers factors like network growth/adoption, upcoming catalysts, sustainability of fundamentals, token valuation, token supply inflation, and potential tail risks, emphasizing short-term momentum and adoption metrics.
How do ETF approval odds for XRP and Cardano compare to other altcoins?
Bloomberg analysts indicate very high approval odds (90% or higher) for XRP and Cardano ETFs by year-end 2025, placing them alongside Litecoin, Solana, Polkadot, and Avalanche due to positive SEC engagement.
The post Why Is Grayscale Leaving XRP and Cardano off Its Q3 Top 20 List? appeared first on Coinpedia Fintech News
Both XRP and Cardano are under pressure this week, with prices slipping despite recent positive developments. XRP is down over 4% in the last 24 hours, now hovering around $0.509, while Cardano (ADA) fell over 2%, currently trading at $0.555. The dips come amid increased trading activity, suggesting traders are still engaged, but the sentiment …
