The U.S. Securities and Exchange Commission (SEC) has pushed back its decisions on high-profile spot cryptocurrency ETFs for Dogecoin (DOGE) and XRP, marking another instance of regulatory caution in the digital asset sector. Simultaneously, in a quieter but equally significant move, the agency has closed its investigation into PayPal’s U.S. dollar-backed stablecoin, PYUSD, with no enforcement action taken.
According to filings published on April 29, the SEC has postponed the approval deadlines for two proposed exchange-traded funds: the Bitwise Dogecoin ETF and the Franklin Templeton XRP ETF. New tentative decision dates have been set for June 15 and June 17, respectively. While disappointing to some market participants, the delay was widely anticipated by analysts.
Under current U.S. law, the SEC has 45 days to act on proposed rule changes regarding ETF applications but can extend this review period up to 90 days if deemed necessary. Bloomberg Intelligence ETF analyst James Seyffart noted that most ETF applications, including those for Ethereum staking and Solana-based products, are unlikely to see final decisions until late 2025.
“The SEC is simply taking advantage of the full time allowed to assess each application,” Seyffart wrote on X. “This is standard procedure.”
Despite the delays, both DOGE and XRP prices remained relatively flat, mirroring Bitcoin’s broader market consolidation.
In a more favorable regulatory development, payments giant PayPal announced in an April 29 SEC filing that the agency has formally ended its investigation into PYUSD, the company’s U.S. dollar-pegged stablecoin.
The SEC originally issued a subpoena in November 2023 seeking documents related to the stablecoin’s issuance and backing. However, PayPal disclosed that in February 2025, it received notice that the investigation was being closed with no enforcement action. This decision removes a key overhang from PayPal’s crypto ambitions and signals a rare moment of regulatory clarity in the stablecoin sector.
PayPal’s stablecoin, which is reportedly 100% backed by dollar deposits and short-term U.S. Treasuries, has faced difficulty gaining market share in a field dominated by Tether (USDT) and Circle’s USD Coin (USDC). PYUSD currently holds a market cap of approximately $880 million - just a fraction of USDT’s $148.5 billion.
However, recent efforts to boost adoption appear to be gaining traction. In April, PayPal introduced a 3.7% yield reward for U.S. users holding PYUSD as part of a new loyalty program. The firm also unveiled a strategic partnership with Coinbase aimed at expanding PYUSD's use cases within the broader crypto ecosystem.
“We are excited to work with Coinbase to increase adoption of PYUSD and drive innovation across the digital finance space,” said PayPal CEO Alex Chriss in a statement.
These developments highlight the SEC’s often-contradictory stance toward the crypto industry. On one hand, the agency continues to exercise caution with retail-facing crypto ETFs, deferring decisions and calling for extended review periods. On the other, its decision to quietly close a high-profile stablecoin investigation without penalty suggests a growing recognition of responsible actors in the digital payments space.
The timing of these two announcements also reinforces a broader narrative: while speculative products like DOGE and XRP ETFs face steep regulatory scrutiny, stablecoins and tokenized financial instruments - especially those tied to existing financial institutions - are gradually gaining institutional acceptance.
Looking ahead, ETF applicants and investors should expect continued delays as the SEC navigates the evolving crypto regulatory landscape, particularly with election-year politics in the background. Meanwhile, firms like PayPal are carving a compliant path forward, hinting that the future of crypto in the U.S. may be defined less by hype and more by structured, utility-driven innovation.