SEC Delays Decision on Franklin Ethereum ETF Staking Proposal

The U.S. SEC has extended its review period to November 13 for the Franklin Spot Ethereum ETF’s proposal to add staking functionality, reported on September 10.

The postponement highlights regulatory caution on integrating staking in traditional financial products, influencing Ethereum’s market perception.

SEC’s Decision Postpones Integration of Staking into ETFs

The SEC’s decision to delay the review of Franklin Spot Ethereum ETF introduces a pause in integrating staking capabilities into conventional ETF structures. Franklin Templeton, as the sponsor, continues awaiting SEC approval, while stakeholders observe regulatory steps.

The postponement signals regulatory caution, reflecting concerns around staking as a security function. Ethereum staking rewards, with potential yields of 3–4% APR, remain attractive to traditional investors awaiting clarity.

Since there are no direct quotes or public statements from key players, executives, or influential figures regarding the SEC’s postponement decision as of September 10, 2025, I can’t provide specific quotes in the format you’ve requested. However, I can summarize the findings: No direct quotes from Gary Gensler, Chair of the SEC, or any officials regarding the postponement.

Market reactions have been muted, with no sudden price fluctuations in Ethereum following the announcement. Key figures and industry influencers have not publicly commented on this SEC decision as of the available information.

Ethereum Price Holds Steady Amid SEC Delays

Did you know? The SEC’s hesitancy reflects a historical pattern of delaying ETF decisions, seen in past reviews like BlackRock’s and VanEck’s, creating short-term market uncertainty.

Ethereum (ETH) currently trades at $4,330.04, with a market cap of formatNumber(522657598930, 2). The asset sees a 24-hour trading volume of formatNumber(37531010097, 2), representing an 11.79% change. According to CoinMarketCap, ETH holds 13.30% market dominance with a circulating supply of 120,704,920.

Analysis from Coincu suggests that approval of the ETF could bridge blockchain-based finance with traditional markets through staking and increase investor accessibility. However, regulatory clarity is essential for such integration to proceed smoothly.