XRP News Today: SEC Streamlines Spot Crypto ETF Approval Process With New Guidelines

The U.S. Securities and Exchange Commission (SEC) is in the process of developing a unified framework for spot crypto exchange-traded funds (ETFs). This initiative aims to expedite the approval process for numerous applications related to assets such as Solana, XRP, and Dogecoin. The regulator is currently working with exchanges to finalize a comprehensive rule that would replace the existing case-by-case method, which relies on the complex 19(b)4 form.

The SEC has recently issued a 12-page disclosure guideline that outlines how ETF issuers should communicate crypto-specific risks. This includes clear language on custody concerns, asset volatility, and operational structures. This guidance marks a shift from the SEC’s previous enforcement-heavy approach. Under new leadership, the agency has paused multiple lawsuits and redirected its focus toward structured regulation. Additionally, the commission has established a task force to develop long-term rules for digital asset funds, offering new hope for faster ETF approvals.

A second key document is anticipated soon, which is expected to replace the existing exemption form process and enable listings under a general rule. If adopted, the filing-to-launch time could be reduced from 240 days to just 75 days. This move is seen as a significant step towards streamlining the approval process for spot crypto ETFs, potentially cutting wait times and making the process more efficient for issuers.

While major ETFs for Solana and other tokens await approval, some issuers are taking alternative routes. REX Financial and Osprey Funds launched the REX-Osprey Sol + Staking ETF on July 1. This fund circumvents current rules by investing in a separate entity holding Solana and a non-U.S. fund. This creative structure allows them to offer staking rewards and gain a first-mover advantage in a highly competitive market. The ETF saw significant inflows on its debut day, and REX Financial’s CEO Greg King confirmed plans to pursue a spot Solana ETP once clear rules emerge.

The SEC's new guidelines require issuers to clearly address, in plain English, all factors that make crypto-based ETFs distinctive. This includes detailing the unique characteristics of the underlying cryptocurrencies and how they differ from traditional assets. The move is seen as a positive development for the crypto industry, as it paves the way for more crypto ETFs to be approved in the future. The new listing guidance, released on July 2, provides a broader framework for the approval of spot crypto ETFs, including those linked to Solana, XRP, and meme coins.

The SEC's new rules are the first step towards the approval of applications for various types of crypto-related ETFs. This initiative aims to simplify the approval process for future crypto ETFs, providing a clear and consistent set of guidelines for issuers. The SEC's move is expected to increase the availability of crypto ETFs, providing investors with more options to gain exposure to the crypto market. The new guidelines are also expected to enhance the transparency and efficiency of the approval process, making it more attractive for issuers to bring their crypto ETFs to market.