SEC Internal Disagreements Could be Bad News for Crypto ETFs

SEC Commissioner Caroline Crenshaw blocked a fast approval process on several crypto ETF products. Specifically, she delayed several new applications and dissented on options trading, basket ETFs, and more.

In other words, the Commission will need a full vote to approve such measures, and more delays are likely. Atkins and the other pro-crypto Commissioners can easily outvote her, but it’ll take time.

Why is the SEC Slow on Crypto ETFs?

Since the SEC came under new management this year, the crypto community has expected a wave of support for new ETFs.

However, over the last few weeks, we’ve seen repeated delays and minor setbacks, with bullish developments nonetheless hitting snags. Greg Xethalis, General Counsel at Multicoin Capital, circulated something that could be very relevant:

On July 29, the SEC had 13 votes, all relating to crypto ETPs. – Scheduling comments on 431 Action against DGLC and Bit10 – Several on options on IBIT, BITB and GBTC – Approval of Bitwise BTC&ETH – In-Kind Creates and Redeems They all broke 3 in favor and 1 opposed. pic.twitter.com/PDa0dbTe6e

— Greg Xethalis (@xethalis) August 7, 2025

ETF analysts quickly noticed this observation, using it as evidence for a broader theory. Essentially, the SEC has a “delegated authority” procedure that allows streamlined decisions, but a single Commissioner can force the slower process.

In one day, the SEC’s most anti-crypto Commissioner invoked this authority for several votes regarding crypto ETFs.

How Big of a Problem Is This?

Since crypto industry lobbyists successfully thwarted Caroline Crenshaw’s bid for SEC re-nomination, she has persistently opposed the Commission’s new pro-crypto shift. These votes signal her firm opposition to crypto ETFs, and the SEC has to entertain it.

So, what’s the damage? Crenshaw voted against 13 different proposals on crypto ETFs, including things like multicoin basket products, options trading, and more.

However, at least some of these proposals went through despite her dissent. The SEC can still pass a friendly crypto ETF policy, it just might be more of a hassle.

Still, it is a noteworthy setback. The SEC has been trying to streamline altcoin ETF approvals, and this plan might not materialize.

For now, expect the Commission to require a slow timetable on any ETF-related proposals. Advancements will still happen, but the community will continue experiencing delays.