SEC’s New Guidance Sets the Stage for Crypto ETF Regulations

The U.S. Securities and Exchange Commission (SEC) has taken a notable step toward building a regulatory framework for cryptocurrency exchange-traded funds (ETFs). A new 12-page guidance document released last Tuesday outlines disclosure standards for crypto-related ETFs, signaling a shift in the regulator’s stance on digital asset investment products.

This recent move reflects a change in priorities under the agency’s Republican leadership. The SEC has not only launched a task force focused on developing crypto regulations but has also restructured its crypto enforcement strategy. Several ongoing enforcement cases that were previously progressing strongly have now been paused or withdrawn.

According to individuals familiar with internal discussions, the SEC’s Division of Trading and Markets is also expected to offer additional instructions that could simplify the application process for crypto ETFs—potentially speeding up the launch timeline for many pending funds.

Sui Chung, CEO of CF Benchmarks, explained:
“The SEC is working on a standardized structure for crypto-based investment products to address the growing number of ETF filings waiting for approval.”

Industry leaders welcomed the guidance.
“The most important aspect of this document is that it exists,” said Matt Hougan, Chief Investment Officer at Bitwise Asset Management, which has several crypto ETF applications pending.
“It shows the SEC is treating crypto ETPs as part of mainstream investing and wants to make the process more efficient for both issuers and its own staff.”

The guidance requires issuers to present information in plain language and to disclose unique features of crypto ETFs, such as digital custody and volatility risks.

However, the SEC’s next move is expected to be more impactful. Insiders suggest the agency plans to replace the current process—which requires a separate form (known as 19(b)4) for each new ETF—with a unified listing rule. This change could cut the approval process from eight months to as little as 75 days.

A senior executive at one crypto issuer stated that discussions between the SEC and stock exchanges are underway to finalize the language for the new framework. Filing for such a rule could happen within weeks.

While ETFs based on digital assets like XRP, Polkadot, Dogecoin, and even a Trump-themed meme coin await approval, many in the industry believe the next major wave of products will involve Solana, the sixth-largest cryptocurrency by market cap.

Still, that may not happen until the SEC releases its second set of guidance—likely delaying new launches until autumn. Some asset managers are moving ahead despite the wait.

REX Financial, in partnership with Osprey Funds, recently debuted the REX-Osprey Sol + Staking ETF (SSK.Z). Instead of directly holding Solana, the fund invests in another entity that owns both Solana and a foreign Solana-based fund. This workaround allows them to sidestep the current rules and offer returns through staking, a process where crypto holders validate blockchain transactions in exchange for rewards.

Greg King, CEO of REX Financial, said:
“The SEC is definitely moving forward with crypto regulations, but the rulebook is still being written.”
He confirmed the fund drew $12 million in assets on its first trading day, July 1.
“Once the SEC finalizes its crypto rules, we’ll pursue a direct Solana ETF as well. This isn’t a matter of choosing one over the other.”