SEC Streamlines Crypto ETF Approval Process With New 75-Day Rule

The U.S. Securities and Exchange Commission (SEC) is in the process of implementing a standardized rule to streamline the listing of spot crypto ETFs. This move is in response to the growing number of applications for cryptocurrencies such as Solana, XRP, Dogecoin, Polkadot, and the Trump meme coin, which are awaiting final approval.

The current process, which relies on the 19b-4 exemption, often delays ETF launches by up to 240 days. The new framework aims to reduce this timeline to around 75 days by applying a single, general rule to all listings. This change is expected to simplify the regulatory procedures and make the approval process more efficient.

On July 2, the SEC released a 12-page guidance document outlining the criteria issuers must meet to get approval. This document requires issuers to explain custody methods, competitive risks, and structural features in plain English. It represents the first phase of a broader regulatory overhaul under the SEC’s current leadership. A second document, expected by early autumn, will provide the actual listing framework and is likely to be more significant as it will eliminate the need to file unique listing forms for every individual product.

Industry participants expect the next approvals to focus on Solana, the sixth-largest cryptocurrency by market cap. However, issuers do not expect any launch before the SEC releases its second round of guidance, which is expected to be released in early autumn. In the meantime, some firms are finding ways around the current delay. For example, REX Financial and Osprey Funds launched the REX-Osprey Sol + Staking ETF (SSK.Z) last week. This product does not directly hold Solana but owns an entity that invests in Solana and a separate Solana fund based outside the U.S. This approach allows REX to bypass the existing ETF approval rules while offering exposure to Solana and staking rewards.

The release of formal guidance signals a strategic change at the SEC. Recent enforcement slowdowns, internal restructuring, and the creation of a dedicated rulemaking team indicate a more coordinated effort toward crypto regulation. The new structure reflects the agency’s response to a surge in crypto ETF filings and suggests that the SEC now seeks “a framework for how they’d like to see all these crypto assets included in investment funds.” The document’s existence alone marks a shift, indicating that the SEC acknowledges that crypto ETPs are becoming part of the mainstream.

Once the second part of the guidance is finalized, it is expected to allow faster, more consistent approval for crypto ETFs tied to a broader range of assets. This includes not only major cryptocurrencies but also meme coins and tokens currently outside the ETF landscape. The updated rules are expected to significantly streamline regulatory procedures and make the approval process more efficient, benefiting both issuers and investors in the crypto space.