Regulatory Shift Could Fast-Track Altcoin ETFs to Mainstream Markets

The U.S. Securities and Exchange Commission (SEC) has acknowledged the filing for the Canary Spot Staked SEI ETF, signaling a potential step forward in the regulation of crypto-based exchange-traded funds (ETFs). The filing, which was recently shared on social media platforms, is part of a broader regulatory shift as the SEC considers proposals to streamline the approval process for such funds. This move could significantly reduce the time it takes to bring new crypto ETFs to market, potentially from the current average of 240 days to a range of 60–75 days [1].

The proposed generic listing standards, which have been submitted by Nasdaq, NYSE Arca, and Cboe BZX, aim to establish a consistent framework for crypto and commodity-based ETFs, similar to those already in place for traditional ETFs under SEC Rule 6c-11. If adopted, these standards would allow qualifying funds to list without requiring individual SEC approval under Rule 19b-4, a process that has historically been slow and burdensome. The change would bring crypto ETFs in line with conventional financial products, offering greater efficiency and predictability for market participants [2].

Margaret Rosenfeld, chief legal officer of Everstake, highlighted that the current approval process for crypto ETFs is overly complex, creating delays and uncertainties for both issuers and investors. With the adoption of generic listing standards, the process would become more accessible, enabling a broader range of digital assets—including altcoins like Solana (SOL) and XRP (XRP)—to gain exposure through regulated investment vehicles. These proposals also include conditions, such as requiring six months of trading history on regulated futures markets, to ensure that only sufficiently mature assets qualify [2].

The potential adoption of these standards could also clear the way for more innovative structures, such as staking-linked products and thematic crypto baskets. Such developments align with broader global efforts to integrate digital assets into regulated financial markets, with regions like the European Union and Singapore already offering clearer regulatory frameworks. The SEC’s decision, if finalized in September 2025, could allow the first wave of altcoin ETFs to be listed before the end of the year, addressing a backlog of nearly 100 applications [2].

Critically, the shift toward streamlined approvals does not signal an endorsement of any particular crypto asset. Rather, it reflects the SEC’s recognition of the need for consistent, transparent rules that protect investors while fostering innovation. As the agency moves forward, the key challenge will be ensuring that the regulatory framework supports market integrity without stifling growth. By bringing crypto ETFs into the mainstream, the SEC could help shift investor access from less transparent, offshore platforms to regulated domestic markets [2].

Source: [1] SEC acknowledges filing for Canary Spot Staked SEI ETF (https://www.facebook.com/cryptosrus/posts/new-sec-acknowledges-filing-for-canary-spot-staked-sei-etf/137****098292655/) [2] SEC Approval Of Listing Standards Can Mainstream ... (https://cointelegraph.com/news/sec-approval-crypto-etfs)