SEC Considers Streamlined Process for Crypto ETF Approval

The Securities and Exchange Commission (SEC) is reportedly considering a streamlined process for approving cryptocurrency exchange-traded funds (ETFs). This new approach would allow fund managers to bypass the traditional 19b-4 filing process, which is currently required for listing new financial products. Instead, issuers could file a standard S-1 registration form, typically used for initial public offerings, and wait for 75 days. If the SEC does not raise any objections within this period, the ETF would be cleared for listing.

This proposed change aims to reduce the prolonged back-and-forth often required between asset managers and the SEC during the current approval process. While the SEC has not publicly confirmed the proposal, the specifics, especially which cryptocurrencies would qualify, are still under discussion. If adopted, this change could open the floodgates for a range of crypto ETFs, including those tied to altcoins like Solana, XRP, Litecoin, and Dogecoin. Analysts believe such a move would catalyze new inflows into altcoin markets, potentially triggering what some are already calling “altcoin ETF summer.”

The SEC has already taken steps in this direction. Last week, it approved the REX Shares Solana ETF (STAK), the first U.S.-listed crypto ETF to include staking rewards in its investment strategy. The approval has renewed optimism among fund managers awaiting decisions on other crypto ETF proposals, many of which are facing final deadlines in the second half of 2025.

As pressure builds from both institutional investors and retail markets, the SEC’s willingness to modernize its approach could define the next chapter in crypto’s integration into traditional finance. The potential shift towards a more efficient approval process for crypto ETFs reflects a broader trend of regulatory engagement with the cryptocurrency industry. While the Commission has not yet approved any new crypto ETFs under the new management, its willingness to explore new pathways signals a positive intention towards the industry. This development could pave the way for a more structured and predictable regulatory environment for crypto ETFs in the United States.