SEC Fast-Tracks Solana, XRP ETF Approval With New Crypto Rule

• SEC may replace the 240-day 19b-4 process with a 75-day unified rule for spot crypto ETF approvals.
• New listing guidance released July 2, with a broader framework expected by early autumn.
• Solana likely leads the next batch of ETF approvals; some firms are launching workaround products in the meantime.

The U.S. Securities and Exchange Commission (SEC) is preparing a standardized rule to simplify the listing of spot crypto ETFs. The move comes as applications tied to cryptocurrencies such as Solana, XRP, Dogecoin, Polkadot, and the Trump meme coin await final approval.

The updated framework aims to replace the current case-by-case approach, which relies on the 19b-4 exemption process. That process often delays ETF launches by as much as 240 days. 

Under the new system, the SEC could reduce the timeline to around 75 days by applying a single, general rule to all listings.

A senior executive at one ETF issuer told Reuters the SEC and exchanges are still negotiating the final language. Once finalized, exchanges are expected to submit filings under the unified structure within days or weeks.

Plain-English Guidance Released, Second Phase Expected by Autumn

The SEC released a 12-page guidance document on July 2, which outlines the criteria issuers must meet to get approval. It requires issuers to explain custody methods, competitive risks, and structural features in plain English.

This document represents the first phase of a broader regulatory overhaul under the SEC’s current leadership. A second document, expected by early autumn, will provide the actual listing framework. That document will likely be more significant, as it will eliminate the need to file unique listing forms for every individual product.

SEC staff are reportedly building a new listing template. This template would allow exchanges to list crypto ETFs without repeating the entire exemption process, significantly streamlining regulatory procedures.

Solana ETFs Expected First Under New Rules

While dozens of spot crypto ETF applications are still pending, industry participants expect the next approvals to focus on Solana. Solana is the sixth-largest cryptocurrency by market cap and has seen growing interest from both retail and institutional investors.

However, issuers do not expect any launch before the SEC releases its second round of guidance. The timeline now points to early autumn for any major approvals.

In the meantime, some firms are finding ways around the current delay. REX Financial and Osprey Funds launched the REX-Osprey Sol + Staking ETF (SSK.Z) last week. The product does not directly hold Solana. Instead, it owns an entity that invests in Solana and a separate Solana fund based outside the U.S.

This approach allows REX to bypass the existing ETF approval rules while offering exposure to Solana and staking rewards. According to CEO Greg King, the fund attracted $12 million in assets on its July 1 launch day.

Industry Sees Shift in SEC’s Crypto Approach

The release of formal guidance signals a strategic change at the SEC. Recent enforcement slowdowns, internal restructuring, and the creation of a dedicated rulemaking team indicate a more coordinated effort toward crypto regulation.

Sui Chung, CEO of CF Benchmarks, said the new structure reflects the agency’s response to a surge in crypto ETF filings. He said the SEC now seeks “a framework for how they’d like to see all these crypto assets included in investment funds.”

Bitwise CIO Matt Hougan noted that the document’s existence alone marks a shift. “It suggests the SEC acknowledges that crypto ETPs are becoming part of the mainstream,” he said.

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The SEC continues to finalize the second part of its guidance, which will serve as a general rule for listing all crypto ETFs. Until that is complete, new product launches will remain on hold.

Once released, the updated rules are expected to allow faster, more consistent approval for crypto ETFs tied to a broader range of assets. That includes not only major cryptocurrencies but also meme coins and tokens currently outside the ETF landscape.