The U.S. Securities and Exchange Commission has released guidance about crypto-linked exchange-traded products which will allow the approval of dozens of pending ETF applications for Solana, XRP and meme tokens.
The 12-page disclosure directive serves as the first official step toward establishing a regulatory system for crypto ETFs while indicating a change in direction under Republican leadership. The SEC develops new rules while suspending specific enforcement activities and reorganizes its crypto oversight units to enhance approval efficiency.
The SEC demonstrates its mainstream approach to crypto ETPs according to Matt Hougan who serves as CIO at Bitwise where multiple applications remain pending. The SEC’s trading and markets division will issue additional guidance which focuses on standardizing listing procedures according to industry leaders.
The current process for crypto ETFs requires each issuer to submit a 19(b)4 filing for special exemption approval which takes at least 240 days to complete. A standardized template for issuers would shorten the review process to 75 days.
The new guidelines demand issuers to present unique risks about custody and competition and asset volatility through simple language explanations. The asset management industry received clear guidance from the new regulations yet the upcoming approval logistics streamlining process holds greater importance. This development represents a major breakthrough according to crypto advocates because it will enable institutions to access digital assets more widely.
