The U.S. Securities and Exchange Commission (SEC) has taken a pivotal step toward mainstreaming crypto investment products with the release of long-awaited guidance for exchange-traded products (ETPs) tied to cryptocurrencies.
The 12-page document, quietly issued last Tuesday, outlines how asset managers should prepare filings for crypto ETFs, signaling a soft pivot by the regulator under the Trump administration’s Republican leadership.
The move is the clearest indication yet that the SEC is rethinking its posture toward digital assets—an industry it had previously targeted with an aggressive enforcement campaign. Under the new framework, the Commission has paused or abandoned several high-profile lawsuits and begun developing a regulatory blueprint that may accelerate approvals for ETFs tracking everything from Solana to Trump-themed meme coins.
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SEC insiders quoted by Reuters say the agency is also working on a new listing template to replace the lengthy and restrictive 19(b)(4) application process, which currently requires exchanges to seek individual exemptions for every new crypto ETF. If adopted, the new framework could slash the review time from as much as 240 days to as few as 75 days, enabling faster market entry for dozens of crypto ETF proposals currently awaiting a verdict.
“This is the first time we’ve seen concrete rules of the road for crypto ETPs,” said Matt Hougan, Chief Investment Officer at Bitwise Asset Management, which has multiple crypto ETF applications pending. “The most important thing is that this guidance exists at all.”
The new SEC document instructs issuers to explain in plain English how crypto ETFs differ from traditional offerings—particularly regarding custody arrangements, valuation methodology, and risks in volatile digital asset markets. The aim, according to officials familiar with the matter, is to simplify the SEC’s internal review process while enhancing transparency for investors.
“This guidance reflects the SEC’s recognition that crypto ETPs are now part of the investment mainstream,” said Sui Chung, CEO of CF Benchmarks, a leading crypto index provider.
But the real breakthrough may lie in the anticipated second phase of regulatory reform. SEC staff are now working with major exchanges like Nasdaq and Cboe to draft a universal listing framework, which could eliminate the need for case-by-case review of each ETF linked to individual crypto assets.
This overhaul comes amid mounting pressure on regulators to keep pace with financial innovation. With more than two dozen ETF filings pending—including ones tied to XRP, Polkadot, Dogecoin, and even President Trump’s meme coin—the SEC is expected to issue additional rule changes before the fall, potentially opening the floodgates to a new class of retail-accessible crypto investment products.
Solana in the Spotlight
While most asset managers await clearer rules, some are already finding creative workarounds.
Last week, REX Financial and Osprey Funds launched the first U.S. ETF offering indirect exposure to Solana, the world’s sixth-largest cryptocurrency. Dubbed the REX-Osprey Sol + Staking ETF, the product doesn’t invest directly in Solana but instead channels investor funds into a separate entity that holds both Solana tokens and a non-U.S.-based Solana fund.
This strategy allows REX and Osprey to bypass SEC restrictions on spot crypto ETFs. The fund also introduces yield-bearing opportunities via staking, in which token holders validate blockchain transactions in exchange for rewards.
“It’s not a case of either/or,” said Greg King, CEO of REX Financial. “We’re getting out in front now with what’s allowed, and we’ll file for a direct Solana ETP when the SEC finalizes its broader rules.”
King said the new ETF pulled in $12 million on its first day of trading on July 1, underscoring the strong investor demand for exposure to emerging blockchain networks.
Trump Administration’s Changing Crypto Stance
The guidance marks a significant shift from the SEC’s previous approach under Trump, who initially supported robust enforcement against digital assets deemed securities. However, with the formation of a new SEC crypto task force, a refocusing of its enforcement priorities, and a more collaborative posture toward asset managers, the Trump administration now appears to favor integrating crypto more firmly into the financial system.
Sources familiar with the matter told Reuters that SEC Chair Hester Peirce and Commissioner Mark Uyeda, both Republicans, have championed efforts to streamline the ETF process and reduce regulatory bottlenecks, especially for “commoditized” assets like Bitcoin, Ethereum, and Solana.
While Nasdaq, Cboe, and the New York Stock Exchange declined to comment, executives at several ETF issuers expect a unified crypto ETF template to be filed “within days or weeks.”
The roadmap ahead suggests an intense period of product launches and competition. Asset managers like Bitwise, VanEck, Grayscale, and BlackRock all have filings in the pipeline. Once the second phase of guidance is issued—expected by early fall—the SEC could begin approving a wave of new ETFs, including those for meme coins and high-volatility altcoins that had previously been relegated to crypto exchanges.
Despite the rapid pace of development, industry insiders caution that the SEC is not rushing and that investor protection remains a central concern.
“Crypto may be entering the mainstream, but this is still the SEC,” said King. Not everything has been codified yet,”
If the current pace holds, fall 2025 may usher in a new chapter in U.S. crypto investing—one where traditional and digital finance fully converge on Wall Street.