Is the SEC Preparing a Fast Lane for SOL, XRP, and ETF?
The SEC is in the early stages of developing a set of universal listing standards for cryptocurrency ETFs, aimed at significantly speeding up the approval process for such funds.
Original Article Title: "US SEC Considering Fast Track, SOL, XRP ETFs About to 'Open the Floodgates'?"
Original Source: Bitpush
The U.S. Securities and Exchange Commission (SEC) is contemplating a major change that could completely alter the listing approval process for cryptocurrency exchange-traded funds (ETFs).
According to independent journalist Eleanor Terrett, the SEC is in the early stages of creating a set of universal listing standards for crypto ETFs, aimed at significantly accelerating the approval process for such funds. If implemented, this move heralds that, following Bitcoin and Ethereum spot ETFs, more mainstream digital asset ETF products may be poised to experience an "opening of the floodgates."
Fast Track: From 240 Days to 75 Days
Currently, the listing approval for crypto ETFs follows a cumbersome and time-consuming process: an exchange must submit a 19b-4 form, which typically triggers a lengthy 240-day review period. However, according to sources cited by The Block, the new framework under discussion by the SEC would significantly shorten this approval timeline, potentially streamlining the process to just 75 days.
Sources indicate that this initiative is primarily driven by major exchanges, aiming to align the approval process for crypto ETFs with that of traditional ETFs.
"This is actually an initiative that was proposed to the SEC by the exchanges saying, 'We would love for you to approve these listing standards that we propose,''' a source revealed. "So that every time we have a new crypto ETP (exchange-traded product), as long as it fits these standards, we don't have to seek SEC approval anymore. We can self-approve."
New Standard Considerations: Market Cap, Decentralization, and Holdings Distribution
The universal listing standards under discussion may encompass a range of key metrics, including: the digital asset's total market cap, level of decentralization, and wallet distribution. The SEC has also been involved in these discussions to ensure that any approved standards effectively protect investors and promote market efficiency.
Furthermore, based on new guidelines released on July 1st, issuers must provide detailed disclosures on custody arrangements, risk factors, and operational challenges of the cryptocurrency market. The SEC emphasizes that comprehensive risk disclosures must cover price volatility, cybersecurity threats, network attacks, fraud risks, and competition from other products, among others.
An SEC insider stated: "They (SEC) are actively engaging with trading platforms... They just want to ensure that any eventual approval standard will protect investors and foster an efficient market."
Despite the anticipation surrounding this potential framework, ETF issuer 21Shares mentioned that they have not had direct conversations with the SEC regarding the "proposed tokenized ETF general listing standards." However, 21Shares has already submitted ETF proposals tracking Solana (SOL) and XRP.
21Shares stated: "If such a framework were to be adopted, it would significantly reduce the complexity and uncertainty of the current listing process, eliminating much of the speculation and ambiguity inherent in the existing 19b-4 approval process."
Additionally, the Trump Media Technology Group (operator of Truth Social) submitted documents to the SEC, applying to launch a product called the "Crypto Blue Chip ETF." The fund plans to primarily invest in Bitcoin (70%), Ethereum (15%), Solana (8%), XRP (5%), and CRO (2%).
This move not only signals the direct entry of a major publicly traded company into the space but also reflects the political direction behind it, as Trump is pushing for a more crypto-friendly regulatory environment.
Analyst Prediction: Fastest "Flood" Expected by September
Bloomberg ETF analyst James Seyffart stated during Tuesday's WOLF Trading X Spaces that he anticipates the draft of this framework could be announced as soon as this month and is expected to be implemented in September or October. Seyffart confidently said, "We will see this 'flood' of other assets entering the market by then, and that's exactly what I'm looking forward to."
He and Bloomberg Senior ETF Analyst Eric Balchunas recently jointly predicted that the chances of ETFs for SOL, XRP, and Litecoin gaining SEC approval are as high as 95%. Additionally, proposals for crypto ETFs such as Dogecoin, Cardano, and Polkadot also have a high approval probability, around 90%.
This means that once the new listing standards framework is in effect, the market landscape for cryptocurrency ETFs will rapidly expand, encompassing more mainstream altcoins beyond Bitcoin and Ethereum, offering investors a broader range of digital asset investment channels.
While issuers like 21Shares have stated that they have not directly participated in discussions on universal listing standards, it is generally believed that once the new framework is established, it will greatly reduce the complexity and uncertainty of listing a crypto ETF. With clearer regulations and the continuous emergence of new products, 2025 is expected to be the "breakout year" for crypto ETFs to truly go mainstream.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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