The prospect of an XRP exchange-traded fund (ETF) faced significant challenges this week, as U.S. Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw expressed her dissent on a critical crypto ETF proposal. Following her decisive vote, the previously optimistic outlook for an XRP ETF has dimmed considerably, plunging into uncertainty as Crenshaw intensifies her resistance, consequently affecting the wider crypto ETF landscape.
Crenshaw’s Opposition: A Setback for XRP ETF Aspirations
Recent developments have dramatically altered the sentiment surrounding the XRP ETF. After a prolonged period of optimism, particularly after the successful launch of the ProShares Ultra XRP ETF (UXRP) on NYSE Arca in July 2025, many industry insiders expected this momentum would bolster Ripple’s chances of obtaining SEC approval for its particular XRP ETF.
However, Crenshaw’s vote struck a discordant note. This commissioner has systematically opposed every crypto exchange-traded product proposal submitted to the SEC, marking a total of 13 rejections. These proposals encompassed XRP as well as well-known digital asset products like Bitcoin and Ethereum, all of which received majority support save for Crenshaw’s consistent “no” vote.
XRP had satisfied all SEC updated listing requirements, including maintaining a minimum of six months of derivatives trading. Yet, Crenshaw’s unwavering opposition raises critical questions about the future of crypto ETFs and whether her vote could impede or outright obstruct upcoming approvals.
Data from Polymarket indicates that approval odds for the XRP ETF dipped to 65% following her vote, later climbing to 71%. Just a few weeks prior, those chances were over 90%, illustrating the rapid shift in sentiment.
Broader Implications: Crenshaw’s Regulatory Approach
Crenshaw’s recent vote is symptomatic of a wider skepticism towards crypto regulations. Her criticism extends beyond crypto ETFs, targeting the SEC’s methodology in addressing other crypto-related concerns like liquid staking and stablecoins. According to her assessment, the SEC’s current advisory framework on liquid staking is overly prescriptive and lacks clarity for participants in the market.
Her stance on stablecoins is particularly pointed; she has voiced strong disapproval of SEC labeling USD-pegged stablecoins as “digital dollars,” cautioning that such terminology may mislead investors regarding the real risks involved. She argues that the SEC is falling short in providing robust and fact-based regulatory standards for this rapidly evolving sector.
The significant opposition she represents may hinder Ripple’s aspirations of establishing an XRP ETF. Despite XRP meeting all necessary technical requirements, Crenshaw’s unwavering position highlights how personal philosophies and political dynamics can overshadow regulatory decisions. As the situation unfolds, Ripple and other stakeholders in the cryptocurrency arena remain in a state of uncertainty regarding future developments.
As the SEC continues to review new crypto products, Crenshaw’s strong views on regulation add a layer of unpredictability to XRP’s journey. Her role as the only Democratic commissioner has increasingly become a focal point for the evolving landscape of crypto ETFs.
