XRP News Today: SEC Considers Streamlined Crypto ETF Approval Process

The U.S. Securities and Exchange Commission (SEC) is exploring the possibility of approving crypto ETFs without requiring the traditional 19b-4 rule-change process. This shift in regulatory approach could significantly streamline the approval process for crypto ETFs, potentially leading to increased institutional investment in major cryptocurrencies such as Bitcoin and Ethereum.

This consideration follows a formal submission from Nasdaq, which recommends that spot crypto ETFs be listed under exchange generic listing standards. This approach would parallel how some futures-based ETFs already operate, minimizing the need for individualized review processes. The potential change in leadership at the SEC, with a more crypto-friendly stance, could expedite this transition.

Historically, futures-based Bitcoin ETFs have navigated the market with less regulatory friction, leading to accelerated market entries and investment inflows post-approvals. This potential regulatory change might lead to quicker introduction of crypto ETFs, encouraging institutional investments. Cryptocurrencies like Bitcoin could see increased market activity due to these approvals.

The SEC's potential acceptance of this unique legal structure could pave the way for the launch of the first Solana staking ETF. This ETF would bypass the traditional 19b-4 approval process, which is typically required for new ETF listings. The SEC's silence on the matter has led analysts to speculate that the agency might be open to this innovative approach, which could accelerate the launch timeline for crypto ETFs.

The composition of the GDLC fund is a key factor in the SEC's consideration. As of June 27, the fund holds 80.8 percent Bitcoin and 11.1 percent Ether, while XRP, Solana, and Cardano account for a combined 8.1 percent. This distribution is seen as a low-risk sandbox for the agency, as the non-Bitcoin, non-Ether tranche is relatively small. Analysts believe that the SEC could approve the GDLC conversion precisely because the exposure to these other cryptocurrencies is limited, avoiding the need for a comprehensive crypto-ETF framework.

The SEC's engagement with the proposal is evident from the amended Form S-3 filed by Grayscale on June 26. This move suggests that the SEC is actively reviewing the proposal and providing feedback. The registration statement reiterates that NYSE Arca’s Rule 19b-4 proposal to list the shares cannot proceed without Commission sign-off, but it also includes updated disclosure on custody, creation-unit size, and index methodology—changes that typically occur after iterative feedback from SEC staff.

If the conversion is approved, the GDLC would become the first US spot ETF to give investors regulated exposure to XRP, Solana, and Cardano, albeit in modest proportions. This approval would also provide the SEC with real-time surveillance data on trading, flows, and creation-redemption activity. This data could underwrite subsequent decisions on standalone XRP, SOL, and ADA funds later in 2025.