SEC Faces 70 Crypto ETF Filings Under New Chair Atkins

Incoming SEC Chair Paul Atkins will have a substantial workload awaiting him as he assumes his new role, with over 70 crypto ETF filings to review. These filings encompass a wide range of cryptocurrencies, including Dogecoin, Pengu, Solana, and XRP, reflecting the burgeoning interest in crypto-based investment products and the potential for heightened regulatory oversight.

The review of these ETF filings will be pivotal in shaping the future of crypto investments. The SEC has traditionally been cautious about approving crypto ETFs, citing concerns over market manipulation and investor protection. However, the appointment of a new chair could indicate a shift in regulatory strategy. Atkins' background and views on cryptocurrencies will be closely monitored by industry stakeholders and investors.

The inclusion of Solana and XRP in the list of crypto ETF filings is particularly significant. Solana has garnered attention for its high-speed transactions and low fees, making it an appealing choice for developers and users. XRP, conversely, has faced regulatory scrutiny due to its association with Ripple Labs and ongoing legal disputes. The approval of ETFs for these cryptocurrencies could enhance their market presence and legitimacy.

The review process for these ETF filings will likely entail a comprehensive examination of the underlying assets, the proposed ETF structures, and the potential risks to investors. The SEC will need to balance the drive for innovation with the necessity to safeguard investors from potential hazards. The outcome of this review process could have extensive implications for the crypto industry, potentially clearing the path for broader mainstream adoption of cryptocurrencies as investment assets.

Atkins was confirmed as the U.S. President's pick to lead the Securities and Exchange Commission by a full Senate vote around two weeks ago. His swearing-in ceremony is expected to take place soon, marking an official start to the SEC’s push to regulate crypto collaboratively under new leadership. Although Atkins was a proponent of deregulation during his previous stint at the SEC, analysts say the crypto-friendly veteran may have to make a few first-time calls, specifically when it comes to which cryptocurrencies can be approved for listings as commodity-based trusts.

Last year, the SEC approved spot Bitcoin and Ethereum ETFs under former SEC Chair. While the approvals represented a landmark moment for the crypto industry, it raised deeper questions about which cryptocurrencies should be regulated as commodities, and therefore be allowed to trade on Wall Street in a similar fashion to assets like gold. In total, asset managers are looking for feedback on applications tied to 15 different cryptocurrencies beyond Bitcoin and Ethereum. Those include applications centered on digital assets with large valuations like Solana, Dogecoin, and XRP—alongside relatively nascent ones like the Solana-based tokens Bonk, Pengu, and Official Trump.

Under the Acting SEC Chair, the agency has chipped away at some regulatory uncertainty. In February, the SEC said that it generally doesn’t consider meme coins to be securities, but it didn’t advise whether they were fitting for Wall Street wrappers. For assets like XRP, the SEC won’t be forced to make a decision immediately after Atkins takes the reins at the agency. After punting on XRP ETFs in March, the agency can delay its final decision until mid-October.