SEC Moves to Streamline Approval for Spot Crypto ETFs

The U.S. Securities and Exchange Commission (SEC) is reportedly working on a new regulatory framework to streamline the approval process for spot crypto exchange-traded funds (ETFs) — a development that could mark a turning point for the broader digital asset market.

According to The Block on July 8, the SEC is collaborating with major exchanges such as the New York Stock Exchange (NYSE), the Chicago Board Options Exchange (CBOE), and Nasdaq to draft a new rule set tailored specifically for spot crypto ETFs. Drawing on the structure of traditional ETF regulation, the goal is to introduce a clearer, more efficient review process for digital asset products.

Until now, potential ETF issuers were required to file a 19b-4 form and could face a review period of up to 240 days. Under the proposed framework, this period is expected to be significantly reduced, removing a key bottleneck that has long frustrated both issuers and investors.

The framework, however, is about more than just speed. Draft proposals being discussed reportedly include quantitative benchmarks such as market capitalization, decentralization level, and wallet distribution — signaling the SEC’s intent to assess crypto assets with a more systematic and metrics-based approach. A preliminary version of the framework is expected to be released later this month, with implementation targeted for September or October.

Industry insiders view this move as a positive signal that the SEC is ready to work more constructively with the crypto industry. Just last week, the SEC asked applicants for Solana (SOL) spot ETFs to submit revised registration documents by the end of July, a move widely interpreted as an effort to accelerate the review timeline.

Bloomberg ETF analyst James Seyffart estimates that under the new framework, the chances of approval for Solana (SOL), Ripple (XRP), and Litecoin (LTC) spot ETFs are now around 95%, while Dogecoin (DOGE), Cardano (ADA), and Polkadot (DOT) are each above 90%. This marks a stark contrast from the SEC’s previously cautious — and often adversarial — approach to crypto.

Gregory King, founder and CEO of Osprey Funds and REX Shares, noted that the SEC’s stance has “clearly shifted,” describing the agency as now “more business-friendly, more innovation-driven, and more open to digital assets.” While he emphasized that the government is unlikely to embrace meme coins directly, the overall tone has become notably more constructive.

One key catalyst may have been the launch of the REX-Osprey Solana Staking ETF (ticker: SSK), which began trading on July 2. That product’s debut likely influenced the SEC’s renewed focus on crypto ETFs and highlighted investor appetite for alternative blockchain-based investment vehicles.

For the digital asset space, this isn’t just a matter of regulatory housekeeping. A formalized framework could pave the way for institutional capital to flow more freely into altcoin-based ETFs, expanding the market beyond the dominance of Bitcoin and Ethereum. It also reinforces a broader narrative: that crypto, once on the regulatory fringe, is moving steadily into the financial mainstream.

As markets await the release of the finalized framework, attention will be closely focused on how the SEC chooses to define asset quality and risk. But one thing is clear — if implemented as expected, the new process could unlock a wave of next-generation ETFs, deepening the legitimacy and liquidity of the digital asset ecosystem.