SEC Moves to Standardize Crypto ETF Approval Process

• The SEC is creating a standardized system to approve crypto ETFs faster, cutting approval times from 240 days to 75 days. 

• Solana ETFs are expected to get approved first under the new rules, but no launches will happen before autumn. 

• The agency released initial guidance in July; a second document with the actual framework is coming by early autumn.

The Securities and Exchange Commission is developing a unified framework to streamline spot cryptocurrency ETF approvals. The new approach would replace the current case-by-case review system that has created significant delays for digital asset investment products.

Applications for ETFs tracking Solana, XRP, Dogecoin, Polkadot, and Trump-themed tokens are currently awaiting regulatory approval. The existing 19b-4 exemption process extends approval timelines to approximately 240 days. The proposed standardized system could reduce this period to around 75 days.

A senior ETF issuer executive confirmed that the SEC and exchanges continue negotiations on final regulatory language. Industry sources expect exchanges to submit filings under the new structure within weeks of completion.

Initial Guidance Document Sets Foundation

The SEC released a 12-page guidance document on July 2 outlining approval criteria for crypto ETF issuers. The document requires companies to explain custody arrangements, competitive risks, and structural features using clear language accessible to average investors.

This publication represents the first phase of broader regulatory reforms under the current SEC leadership. The agency plans to release a second document containing the actual listing framework by early autumn. This upcoming guidance will eliminate the need for unique listing forms for each product.

SEC staff are constructing a new listing template allowing exchanges to list crypto ETFs without repeating the complete exemption process. This template aims to reduce regulatory complexity and processing time significantly.

Solana ETFs Lead Next Wave of Approvals

Traders anticipate that Solana-based ETFs will receive approval priority under the new rules. Solana is the sixth-largest cryptocurrency by market capitalization and has attracted substantial interest from retail and institutional investors.

However, no launches are expected before the SEC releases its second guidance document. The timeline points to early autumn for major approvals under the standardized framework.

Some firms have found alternative approaches to market exposure. Last week, REX Financial and Osprey Funds launched the REX-Osprey Sol + Staking ETF. The product bypasses direct Solana holdings by investing in an entity that owns Solana and a separate overseas Solana fund.

This structure allows the fund to avoid current ETF approval restrictions while providing Solana exposure and staking rewards. CEO Greg King reported the fund collected $12 million in assets on its July 1 launch date.

The formal guidance release signals a strategic shift in SEC crypto policy. Recent enforcement slowdowns, internal restructuring, and dedicated rulemaking team creation indicate more coordinated regulatory efforts.