SEC Dissent Causes Ripple in XRP ETF Approval

The anticipation surrounding the approval of an XRP exchange-traded fund (ETF) has faced a major setback this week. This comes after U.S. Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw voted against a proposal for a crypto ETF. The outlook for XRP ETF approval, which was once promising, has dimmed significantly as Crenshaw maintains her firm stance against such financial products. The entire crypto ETF landscape is now under increasing scrutiny.

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Crenshaw’s Vote Halts XRP ETF Momentum

In recent days, the optimism surrounding the XRP ETF has waned considerably. Following the successful launch of the ProShares Ultra XRP ETF (UXRP) on NYSE Arca in July 2025, there was growing confidence that Ripple would secure approval for its own XRP ETF. However, Crenshaw’s opposing vote has altered the landscape dramatically. To date, she has consistently voted against all crypto exchange-traded product proposals presented to the SEC, totaling 13 instances. These proposals spanned across XRP, Bitcoin, and Ethereum products, each passing with a 3-1 vote, with Crenshaw being the sole dissenting voice.

Despite XRP meeting the SEC’s updated listing criteria, including maintaining a minimum of six months of derivatives trading, Crenshaw’s persistent opposition raises concerns about the future of crypto-related ETFs. Her influence may not only delay but also potentially impede future approvals. Polymarket data indicates that the approval odds for the XRP ETF plummeted to 65% following her vote, with a slight recovery to 71%. Just weeks prior, these odds exceeded 90%.

Crenshaw’s Wider Criticism of Crypto Regulation

Crenshaw’s recent vote reflects a broader pattern of criticism that extends beyond crypto ETFs. She has been vocal about the SEC’s handling of other crypto regulatory areas, particularly liquid staking and stablecoins. Crenshaw argues that the SEC’s advisory on liquid staking is fraught with assumptions and lacks clear guidance for market participants.

Her reservations about stablecoins are even more pronounced. She strongly disagrees with a recent SEC statement labeling USD-pegged stablecoins as “digital dollars,” cautioning that such terminology might mislead investors about inherent risks. According to Crenshaw, the SEC is falling short in providing fact-based, legally sound regulations for this rapidly evolving market segment.

Crenshaw’s staunch opposition has emerged as a significant hurdle for Ripple’s quest to gain approval for an XRP ETF. Although XRP has met all technical criteria, her vote underscores the impact of politics and personal viewpoints on regulatory decisions. As Ripple and the broader crypto community remain in suspense, it’s uncertain how the SEC will proceed with new crypto offerings. Crenshaw’s position, as the only Democrat currently serving on the SEC, has become a pivotal element in shaping the future of crypto ETFs.

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