XRP News Today: SEC Proposes Simplified Crypto ETF Listing Process

The United States Securities and Exchange Commission (SEC) is reportedly exploring a simplified listing structure for crypto exchange-traded funds (ETFs) that would automate a significant portion of the approval process. Under the proposed overhaul, ETF issuers could potentially sidestep 19b-4 application filings, the form entities submit to the SEC before listing a financial product on exchanges. Instead, issuers would submit SEC form S-1, the initial listing registration filing, and wait for 75 days. If the SEC does not object to the application, the issuer would be free to list the ETF, reducing the back-and-forth communication between fund managers and the regulator.

Crypto ETF approvals are a hot-button topic, as US-listed altcoin ETFs could attract fresh capital into altcoin markets, potentially triggering a sustained altcoin rally. The SEC has recently greenlit the country’s first staked crypto ETF, the REX Shares Solana ETF (STAK), which includes staking rewards as part of its strategy. The move comes as the SEC faces a backlog of pending decisions on several crypto-related ETFs, many with final deadlines set for the second half of 2025. Proposals in line for approval include ETFs holding Litecoin (LTC), Dogecoin (DOGE), Solana (SOL) and XRP (XRP), along with requests for staking features on Ether (ETH) funds.

The proposed changes suggest that the SEC is acknowledging the reality that crypto ETFs are here to stay and that manual vetting of every filing is unsustainable. By offloading initial eligibility checks to exchanges, regulators could focus on systemic risks rather than paperwork. This move mirrors the SEC’s 2020 “ETF Rule” modernization, which simplified traditional ETF launches. However, unlike conventional funds, crypto ETFs face unique custody, valuation, and market manipulation risks, meaning any new standards will need to address these concerns head-on.

If implemented, the changes could trigger a surge of interest among mid-tier asset managers who have been deterred by the cost and complexity of the 19b-4 process. However, the success of this initiative will depend on the specific criteria that qualify a token for the fast-track process. While SEC officials remain tight-lipped, multiple sources suggest the criteria will likely focus on hard metrics such as market cap, trading volume, and liquidity thresholds. These requirements could make or break many proposed crypto ETFs before they even reach the starting line.

The potential overhaul could fundamentally change how these funds reach the market, setting the stage for an unprecedented wave of listings. The move follows years of mounting pressure from various stakeholders, indicating a shift in the regulatory landscape. The SEC's willingness to consider a standardized path for token ETF listings marks a rare concession to operational reality, acknowledging the need for a more efficient and sustainable regulatory framework for crypto ETFs.