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The U.S. Securities and Exchange Commission (SEC) is advancing a comprehensive rule to expedite approvals for spot cryptocurrency ETFs, signaling a pivotal shift in regulatory approach.
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This initiative aims to streamline the approval process for digital asset funds, potentially reducing the waiting period from 240 days to just 75, benefiting tokens like Solana, XRP, and Dogecoin.
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According to COINOTAG, REX-Osprey’s innovative Solana staking ETF has already captured significant investor interest, positioning itself ahead of regulatory changes.
SEC’s new crypto ETF rule promises faster approvals, boosting Solana and other digital asset ETFs with innovative structures and regulatory clarity.
SEC’s Unified Crypto ETF Rule to Accelerate Market Access
The SEC is actively developing a universal framework designed to simplify and accelerate the approval process for spot cryptocurrency ETFs. This regulatory evolution replaces the traditional case-by-case review under the complex 19(b)4 filing system with a more streamlined, general rule. By doing so, the commission aims to reduce the approval timeline dramatically—from an average of 240 days to approximately 75 days—thereby fostering quicker market entry for a broad range of digital asset funds.
This strategic move reflects the SEC’s recognition of the growing demand for regulated crypto investment products and the need to provide clearer, more consistent guidelines for issuers. The new rule is expected to cover popular cryptocurrencies such as Solana, XRP, and Dogecoin, which have seen numerous ETF applications pending under the current framework. The shift towards a unified rule is anticipated to enhance transparency and investor protection while supporting innovation within the crypto asset class.
Regulatory Guidance Marks a Shift from Enforcement to Structure
In tandem with the rulemaking process, the SEC has issued a detailed 12-page disclosure guideline for ETF issuers, emphasizing the importance of transparent communication regarding crypto-specific risks. This includes explicit disclosures on custody solutions, asset volatility, and operational frameworks, which are critical for investor awareness and confidence.
This guidance represents a notable departure from the SEC’s historically enforcement-centric posture. Under new leadership, the agency has paused several enforcement actions and redirected its focus toward establishing a structured regulatory environment. The formation of a dedicated task force to craft long-term rules for digital asset funds further underscores this strategic pivot, offering a more predictable regulatory landscape for asset managers and exchanges alike.
Innovative Solana ETF Structures Gain Early Market Traction
While the SEC finalizes its new rule, some market participants have adopted innovative approaches to bring Solana-based ETFs to investors sooner. Notably, REX Financial and Osprey Funds launched the REX-Osprey Sol + Staking ETF on July 1, leveraging a creative workaround that invests in a separate entity holding Solana tokens alongside a non-U.S. fund.
This structure enables the ETF to offer staking rewards, a feature highly sought after by investors looking to maximize returns on their crypto holdings. The fund’s debut attracted $12 million in inflows on its first day, signaling strong market demand. Greg King, CEO of REX Financial, has confirmed plans to pursue a spot Solana ETP once the SEC’s new regulatory framework is finalized, positioning the firm to capitalize on forthcoming rule clarity.
Implications for the Broader Crypto ETF Landscape
The SEC’s move towards a universal rule and the emergence of innovative ETF structures like REX-Osprey’s staking fund collectively suggest a maturing crypto investment ecosystem. Faster approvals and clearer guidelines will likely encourage more issuers to enter the market, enhancing product diversity and investor choice.
Moreover, the potential reduction in approval timelines could stimulate competition among issuers, driving innovation in fund design and risk management. For investors, this means increased access to regulated crypto products with transparent risk disclosures and operational safeguards, aligning with broader financial market standards.
Conclusion
The SEC’s development of a unified spot crypto ETF rule marks a significant regulatory advancement, promising to streamline approvals and foster innovation in the digital asset space. Coupled with emerging ETF structures like the REX-Osprey Solana staking fund, these changes reflect a more structured and investor-centric approach to crypto fund regulation. Market participants and investors should monitor these developments closely, as they are poised to reshape the accessibility and diversity of crypto investment products in the near future.
