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The United States continues to ease regulations on digital assets, with the SEC significantly lowering the application threshold for
Another significant moment has come for the regulation of digital assets in the United States. The SEC has significantly simplified the approval process for digital currency ETFs, which will pave the way for spot crypto ETFs such as Solana and XRP.
On September 17 local time, the SEC voted to approve the rule change proposals of the three major national stock exchanges, clearing the way for the full opening of the digital asset ETF market. This decision marks a major shift in the regulatory policy for digital assets in the United States and will pave the way for various spot ETFs of cryptocurrencies, ranging from Solana to Dogcoin.
The new rules have established a universal listing standard and significantly simplified the approval process for digital currency ETFs. Asset management companies and exchanges can now apply for new cryptocurrency spot ETFs under a unified standard without going through lengthy customized regulatory reviews. The approval time has been shortened from 240 days or longer previously to a maximum of 75 days.
The market expects that the first batch of products to benefit will be ETFs tracking Solana and XRP. Asset management companies began submitting applications for these products to the SEC over a year ago, but the regulatory authorities had previously only approved spot ETFs for Bitcoin and Ethereum.
This is the latest move by the Trump administration to mainstream digital assets, in sharp contrast to the cautious attitude of the previous Biden administration. Industry insiders say that although the regulatory floodgates have been opened, the final launch of the product still requires the completion of multiple follow-up tasks such as marketing plans, legal documents, and service providers.
The general listing standards have officially come into effect
The rule changes passed by the SEC's vote this time involve the three major exchanges: the New York Stock Exchange (NYSE), Nasdaq and Cboe Global Markets.
The new rules have established universal listing standards for digital asset and other spot commodity ETFs. Asset management companies and exchanges must meet these standards to obtain approval for new spot crypto ETFs.
The order issued by the SEC in July this year detailed the specific contents of these listing standards. Before this, the SEC adopted a case-by-case review approach for each application of spot crypto ETFs, requiring exchanges and asset management companies to submit two separate applications to different departments.
Teddy Fusaro, president of Bitwise Asset Management, said:
This is a watershed moment for the regulatory approach of digital assets in the United States, overturning a precedent of over a decade since the first Bitcoin ETF application in 2013.
The approval efficiency has been significantly enhanced
The new process will significantly accelerate the listing speed of digital currency ETFs. It is reported that the maximum time from application to listing will be shortened from 240 days or even longer to 75 days, which will provide greater certainty for asset management companies eager to enter the digital asset market.
SEC Chair Paul Atkins described the committee members' approval in a press release as a move to promote innovation and reduce barriers to digital asset products. This statement reflects the Trump administration's more friendly regulatory attitude towards digital assets.
Steve Feinour, a partner at law firm Stradley Ronon, expects that most applicants will opt for a clause that allows for fast-track approval of crypto ETFs with futures contracts already regulated by the Commodity Futures Trading Commission (CFTC) for at least six months.
He expects that the first batch of products could be launched on the market as early as October.
The first batch of products is about to be launched
The market widely expects that ETFs tracking Solana and XRP will be among the first products approved under the new rules. Asset management companies began submitting these applications to the SEC over a year ago, but the regulatory authorities have so far only approved spot ETFs for Bitcoin and Ethereum.
Even for a Bitcoin ETF, its debut in January 2024 was only achieved after years of struggle and legal disputes. In contrast, the SEC during the Biden administration was slow in considering spot crypto ETFs, while the Trump administration clearly aligned itself with the crypto community and committed to taking a more favorable stance on digital assets.
Steve McClurg, CEO of Canary Capital, which has multiple pending products, said: "The door is open, but there is still a lot of work to be done."
Before the SEC's ruling, he had stated that even after the committee's vote, "marketing plans, legal applications, and cooperation with service providers must all be addressed in accordance with the new roadmap."
Feinour pointed out: "Not every token currently meets the requirements, but the SEC's approval will open the floodgates." This indicates that although the regulatory threshold has been lowered, digital assets still need to meet specific standards to obtain approval for ETF products.
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