U.S. continues to ease digital asset regulations, SEC significantly lowers application门槛 for "digital currency ETFs"
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U.S. continues to ease digital asset regulations, SEC significantly lowers application门槛 for "digital currency ETFs"
Market expectations indicate that the first products to benefit will be ETFs tracking Solana and XRP.
Navigating Web3 tides with focused insightsBy Dong Jing, Wall Street Insights
U.S. digital asset regulation has reached another pivotal moment, as the SEC significantly streamlines the approval process for cryptocurrency ETFs, paving the way for spot crypto ETFs such as Solana and XRP.
On September 17 local time, the SEC voted to approve rule change proposals from three major national securities exchanges, clearing the path for a fully open digital asset ETF market. This decision marks a significant shift in U.S. digital asset regulatory policy and will pave the way for spot ETFs on various cryptocurrencies ranging from Solana to Dogecoin.
The new rules establish universal listing criteria, greatly simplifying the approval process for crypto ETFs. Asset management firms and exchanges can now apply for new spot crypto ETFs under unified standards, eliminating the need for lengthy, customized regulatory reviews. The approval timeline has been reduced from 240 days or longer to a maximum of 75 days.
The market expects the first beneficiaries to be ETFs tracking Solana and XRP. Asset managers have been submitting applications for these products for over a year, but the regulator had previously approved only Bitcoin and Ethereum spot ETFs.
This is the latest move by the Trump administration to advance the mainstream adoption of digital assets, sharply contrasting with the cautious approach of the previous Biden administration. Industry insiders note that while the regulatory gate has opened, final product launches still require completing marketing plans, legal documentation, and arrangements with service providers.
Universal Listing Standards Now Effective
The rule changes approved by the SEC’s vote involve the New York Stock Exchange (NYSE), Nasdaq, and Cboe Global Markets—three major exchanges.
The new rules establish universal listing standards for digital asset and other spot commodity ETFs. Asset managers and exchanges must meet these criteria to gain approval for new spot crypto ETFs.
An SEC order issued in July detailed the specific requirements of these listing standards. Prior to this, the SEC reviewed each spot crypto ETF application individually, requiring exchanges and asset managers to submit two separate applications to different divisions.
Teddy Fusaro, President of Bitwise Asset Management, said:
“This is a watershed moment in the SEC’s approach to digital asset regulation, overturning more than a decade of precedent since the first Bitcoin ETF application in 2013.”
Approval Efficiency Greatly Enhanced
The new process will significantly accelerate the launch of crypto ETFs. Reports indicate the maximum timeline from application to listing will shrink from 240 days or more to just 75 days, offering greater certainty to asset managers eager to enter the digital asset market.
SEC Chair Paul Atkins described the committee's approval in a press release as a step toward fostering innovation and reducing barriers for digital asset products. This reflects the Trump administration’s more favorable regulatory stance toward digital assets.
Steve Feinour, partner at law firm Stradley Ronon, expects most applicants will opt for a provision allowing expedited review for crypto ETFs whose underlying asset has had a futures contract regulated by the Commodity Futures Trading Commission (CFTC) for at least six months.
He anticipates the first products could launch as early as October.
First Products Imminent
Market expectations are high that ETFs tracking Solana and XRP will be the first approved under the new rules. Asset managers began submitting applications over a year ago, but the SEC has so far approved only Bitcoin and Ethereum spot ETFs.
Even Bitcoin ETFs only made their debut in January 2024 after years of battles and legal disputes. In contrast, the SEC under the Biden administration moved slowly on spot crypto ETFs, while the Trump administration has clearly aligned itself with the crypto community, pledging a more favorable stance on digital assets.
Steve McClurg, CEO of Canary Capital, which has multiple pending ETF applications, said: “The door is open, but there’s still a lot of work to do.”
Prior to the SEC ruling, he noted that even after the commission’s vote, “marketing plans, legal filings, and coordination with service providers all need to be addressed under the new roadmap.”
Feinour pointed out: “Not every token currently qualifies, but the SEC’s approval opens the floodgates.” This indicates that while regulatory hurdles have been lowered, digital assets must still meet specific criteria to obtain ETF approval.
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