New framework expected to accelerate approvals for Solana, XRP, and other digital asset funds
Introduction
The U.S. Securities and Exchange Commission (SEC) has approved a new set of generic listing standards aimed at expediting the approval process for spot crypto exchange-traded funds (ETFs). The move could significantly shorten timelines for new products tied to cryptocurrencies such as Solana, XRP, Litecoin, and Dogecoin, which are currently awaiting decisions.
Faster Path for Digital Asset ETFs
The decision allows exchanges including Nasdaq, NYSE Arca, and Cboe BZX to list crypto ETFs without requiring each filing to undergo a lengthy case-by-case review. This streamlining falls under Rule 6c-11, which already governs ETF operations in traditional markets.
“By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets,” said SEC Chair Paul Atkins.
He added that the change would reduce barriers to entry, giving investors more choice while supporting innovation in U.S. financial markets.
Industry Reaction and Market Impact
Analysts view the development as a bullish milestone for digital assets. Bloomberg ETF analyst James Seyffart described the approval as “the crypto ETP framework we’ve been waiting for,” predicting a wave of new investment products could hit the market in the coming months.
The decision comes as the SEC faces looming deadlines starting in October for applications tied to Avalanche, Chainlink, Polkadot, and BNB, in addition to the major tokens already under review.
Eligibility Standards and Oversight
To qualify, a crypto ETF must track an asset that trades on a market with surveillance-sharing agreements or underlies a futures contract listed on a designated exchange for at least six months. Alternatively, the product may be eligible if it is already part of an ETF with at least 40% exposure listed on a national securities exchange.
Concerns Over Investor Protection
Not all commissioners are convinced. SEC Commissioner Caroline Crenshaw warned that the move could leave markets vulnerable: “The Commission is passing the buck on reviewing these proposals in favor of fast-tracking unproven products.”
With the new framework in place, crypto ETFs are expected to enter U.S. markets more quickly, expanding investor access but also reigniting debates over the balance between innovation and investor safeguards.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.