XRP News Today: SEC's Clockwork Reform Could Fast-Track Crypto's Mainstream Moment

The U.S. Securities and Exchange Commission is preparing a potential shift in its regulatory approach to cryptocurrency exchange-traded funds, with proposed generic listing standards that could significantly expedite the approval process. These rules, put forward by Nasdaq, NYSE Arca, and Cboe BZX, aim to align crypto ETFs with traditional ETFs by eliminating the need for bespoke SEC approvals under Rule 19b-4 [3]. If adopted, the standards would cut approval timelines from 240 days to 60–75 days, streamlining the entry of new crypto ETFs into the market [3]. This development would mark a pivotal shift in regulatory treatment, moving crypto ETFs from exceptional status into the mainstream of investment products [3].

Currently, the SEC’s approval process for crypto ETFs is arduous, often taking over 240 days and involving extensive public comment, staff reviews, and prolonged uncertainty [3]. Generic listing standards would introduce a more efficient mechanism, enabling faster market entry and fostering innovation in the sector [3]. The proposed rules would also establish clear eligibility criteria, such as a requirement for six months of trading history on CFTC-regulated futures markets, ensuring that only sufficiently mature tokens qualify for listing [3]. This framework could open the door to ETFs tied to altcoins like Solana, XRP, Dogecoin, and potentially more sophisticated structures like staking-linked products or thematic baskets [3].

The potential approval of these rules is a response to growing institutional interest in crypto and the need for regulatory clarity. The U.S. has lagged behind global peers such as the EU, Hong Kong, and Singapore, where more predictable regulatory frameworks for digital assets are already in place [3]. By finalizing the generic listing standards, the SEC would signal a commitment to integrating crypto into the regulated financial ecosystem, aligning with the broader trend of institutional adoption [3]. The SEC has already taken steps toward this goal, approving in-kind creation and redemption mechanisms for crypto ETFs in August 2025, which align them with commodity fund norms and reduce costs [3].

However, the regulatory landscape remains complex, as demonstrated by the SEC’s recent decision to delay approvals for several crypto ETFs until October 2025. The agency extended review periods for seven proposed funds, including XRP, Litecoin, and staking Ethereum products, following a pattern of methodical evaluations that have routinely extended beyond initial timeframes [1]. Market sentiment reflected in prediction platforms shows approval odds for these ETFs declining slightly, with Litecoin at 79% and XRP at 77% [1]. The October 2025 deadlines underscore the SEC’s cautious approach, as it seeks to thoroughly evaluate the risks associated with market structure, custody arrangements, and potential manipulation [1].

Critics argue that crypto does not deserve the same treatment as traditional assets, but proponents emphasize that ETFs provide the transparency, custody safeguards, and surveillance mechanisms regulators have long demanded [3]. Wrapping digital assets in an ETF structure introduces standardized creation and redemption processes and oversight from regulated exchanges, offering a safer and more transparent investment vehicle compared to offshore platforms or unregulated exchanges [3]. By bringing crypto ETFs into the regulatory perimeter, the SEC could help mitigate risks and ensure market integrity [3].

The outcome of the SEC’s evaluation will have significant implications for the future of crypto ETFs and the broader digital asset market. The adoption of generic listing standards could catalyze innovation, enabling the launch of new products such as index funds, thematic baskets, and hybrid ETFs that combine crypto with traditional equities or commodities [3]. If approved, the first wave of altcoin ETFs could list before the end of 2025, clearing a backlog of nearly 100 applications and creating a more dynamic and competitive market [3]. The decision on these proposals, expected in September 2025, will play a decisive role in determining whether the U.S. maintains its position as a global leader in capital market innovation or cedes ground to more crypto-friendly jurisdictions [3].

Source:

[1] SEC Delays 7 Crypto ETF Decisions Until October 2025 (https://yellow.com/en-US/news/sec-delays-7-crypto-etf-decisions-until-october-2025-deadlines)

[2] Crypto Rules in Europe vs. the US: Does Your Stablecoin Strategy Need To Change (https://www.nasdaq.com/articles/crypto-rules-europe-vs-us-does-your-stablecoin-strategy-need-change)

[3] SEC Approval Of Listing Standards Can Mainstream Crypto ETFs (https://cointelegraph.com/news/sec-approval-crypto-etfs)