The United States continues to relax digital asset supervision, and SEC significantly lowers the application threshold for

# SEC Overhauls Crypto ETF Approval Process, Paving Way for Solana, XRP Products

The new regulation has overturned the case-by-case review method in place since 2013. Asset management companies can now apply based on unified standards, significantly simplifying the approval process for cryptocurrency ETFs, with the approval time reduced from 240 days to a maximum of 75 days. The market expects the first batch of beneficiary products to be ETFs tracking Solana and XRP. Analysts believe this marks a watershed moment in the U.S. regulatory approach to digital assets, and the first batch of products is expected to launch as early as October.

Written by: Dong Jing  

Source: Wall Street Insights  

The U.S. digital asset regulation has reached another crucial milestone, as the SEC has significantly simplified the approval process for cryptocurrency ETFs, paving the way for spot crypto ETFs such as those tracking Solana and XRP.  

On September 17 (local time), the SEC voted to approve rule change proposals from three major national stock exchanges, clearing the path for the full opening of the digital asset ETF market. This decision signals a major shift in U.S. digital asset regulatory policy and will pave the way for spot ETFs covering various cryptocurrencies, from Solana to Dogecoin.  

The new rules establish universal listing standards and greatly simplify the approval process for cryptocurrency ETFs. Asset managers and exchanges can now apply for new spot crypto ETFs based on unified standards, eliminating the need for lengthy customized regulatory reviews. The approval time has been cut from the previous 240 days or more to a maximum of 75 days.  

The market expects the first batch of products to benefit from this change to be ETFs tracking Solana and XRP. Asset management companies submitted applications for these products to the SEC over a year ago, but the regulator has so far only approved spot ETFs for Bitcoin and Ethereum.  

This is the latest move by the Trump administration to promote the mainstream adoption of digital assets, in sharp contrast to the cautious stance of the previous Biden administration. Industry insiders said that while the regulatory floodgates have been opened, the final launch of products still requires the completion of multiple follow-up tasks, such as marketing plans, legal documents, and coordination with service providers.  

## Universal Listing Standards Officially Take Effect  

The SEC’s approved rule changes this time involve three major exchanges: the New York Stock Exchange (NYSE), Nasdaq, and Cboe Global Markets.  

The new rules set universal listing standards for digital assets and other spot commodity ETFs. Asset managers and exchanges must meet these standards to obtain approval for new spot crypto ETFs.  

The SEC’s order issued in July this year detailed the specific content of these listing standards. Prior to this, the SEC adopted a case-by-case review approach for each spot crypto ETF application, requiring exchanges and asset managers to submit two separate applications to different departments.  

Teddy Fusaro, President of Bitwise Asset Management, stated:  

“This is a watershed moment in the U.S. regulatory approach to digital assets, reversing a precedent that has stood for more than a decade since the first Bitcoin ETF application in 2013.”  

## Approval Efficiency Significantly Improved  

The new process will significantly accelerate the launch of cryptocurrency ETFs. Reports indicate that the maximum time from application to launch will be reduced from 240 days or more to 75 days, providing greater certainty for asset managers eager to enter the digital asset market.  

In a press release, SEC Chairman Paul Atkins described the commissioners’ approval as a measure to promote innovation and reduce barriers for digital asset products. This statement reflects the Trump administration’s more crypto-friendly regulatory attitude.  

Steve Feinour, a partner at law firm Stradley Ronon, expects most applicants to opt for a provision that allows expedited approval for crypto ETFs with underlying futures contracts regulated by the Commodity Futures Trading Commission (CFTC) for at least six months.  

He anticipates that the first batch of products could launch as early as October.  

## First Batch of Products on the Horizon  

The market widely expects that ETFs tracking Solana and XRP will be the first to be approved under the new rules. Asset management companies submitted applications for these products to the SEC over a year ago, but the regulator has so far only approved spot ETFs for Bitcoin and Ethereum.  

Even Bitcoin ETFs, when they first launched in January 2024, did so only after years of struggles and legal disputes. In contrast, the SEC during the Biden administration moved slowly in considering spot crypto ETFs, while the Trump administration has explicitly aligned itself with the crypto community and pledged a more favorable stance toward digital assets.  

Steve McClurg, CEO of Canary Capital, which has multiple pending products, said: “The door has been opened, but there’s still a lot of work to be done.”  

Before the SEC’s ruling, he noted that even after the commission’s vote, “marketing plans, legal applications, and partnerships with service providers all need to be addressed in line with the new roadmap.”  

Feinour pointed out: “Not every token qualifies currently, but the SEC’s approval will open the floodgates.” This indicates that while regulatory thresholds have been lowered, digital assets still need to meet specific standards to obtain ETF approval.  

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