SEC Develops Common Listing Standard for Crypto ETFs

The U.S. Securities and Exchange Commission (SEC) is actively working on establishing a common listing standard for cryptocurrency exchange-traded funds (ETFs). This initiative is part of a broader strategy to regulate the crypto space more effectively, ensuring that investors are protected while fostering innovation in the financial sector. The development of a common listing standard for crypto ETFs is a response to the growing demand for regulated crypto investment products.

According to crypto journalist Eleanor Terrett, the SEC is collaborating with various exchanges to develop this standard, which is currently in the early stages. Insiders revealed that under this approach, if a token meets the established standard, the issuer can bypass the 19b-4 application process, submit an S-1 registration statement directly, and after 75 days, the exchange can list it. This streamlined process aims to provide clarity for issuers seeking to launch crypto investment products and to expedite the approval of compliant crypto ETFs.

The SEC's recent approval of several spot bitcoin ETFs earlier in January 2025 marked a shift in policy, indicating a more favorable stance towards crypto assets. This approval paved the way for other crypto ETFs, including the first Solana staked ETF, which began trading in early July. The Solana staked ETF, launched by REX-Osprey, allows investors to earn staking rewards while holding Solana (SOL), providing an additional income stream without the need for complex blockchain tools.

The approval of the Solana staked ETF is a milestone in the integration of crypto features into traditional financial products. Previously, similar ETF plans faced delays due to regulatory concerns around taxes and investor protection. The Solana staked ETF addresses these issues by investing some of its assets in other Solana funds, thereby meeting regulatory requirements while offering potential staking returns. This approach could set a precedent for future crypto ETFs, making it easier for investors to access the crypto market through regulated channels.

The SEC's regulatory approach extends beyond bitcoin and Solana. The agency is also evaluating other cryptocurrency-related ETFs, including a spot Dogecoin ETF application by 21Shares. The SEC has delayed its decision on this application, indicating a thorough review process to ensure compliance with listing and trading requirements. Additionally, the SEC is considering a Bitcoin ETF linked to Donald Trump, known as the Truth Social Bitcoin ETF, which aims to track the price of Bitcoin and provide retail investors with an alternative way to gain exposure to the cryptocurrency.

The establishment of a common listing standard for crypto ETFs is expected to streamline the approval process and provide clarity for issuers seeking to launch crypto investment products. This move is part of the SEC's broader efforts to regulate the crypto space, ensuring that investors are protected while fostering innovation. The approval of the Solana staked ETF and the ongoing evaluation of other crypto ETFs demonstrate the SEC's commitment to creating a regulated environment for crypto investments. As the crypto market continues to evolve, the SEC's regulatory approach will play a crucial role in shaping the future of crypto ETFs and the broader financial landscape.