The SEC has changed how it reviews crypto ETF applications. On September 17, 2025, SEC commissioners approved new standards for crypto ETFs, ending the long process of individual approvals. Before, filings could take up to 240 days to review. Many applications were denied because of worries about market manipulation and the need for better oversight. Now, the SEC’s new rules reduce review times to around 75 days. This is possible because oversight responsibility is now shared with stock exchanges like NYSE and Nasdaq. Instead of judging each application one by one, the SEC uses a set of standard rules. This change aims to make it easier and quicker for crypto ETFs to get approved. Additionally, the increase in over 25,000 cryptocurrencies has put more pressure on the SEC to streamline the approval process.
SEC streamlines crypto ETF approvals, cutting review times from 240 to 75 days through shared oversight with exchanges.
Earlier in July 2025, the SEC released detailed guidelines for filing both spot and derivative crypto ETFs. These guidelines help manage the increasing number of applications. They require issuers to explain how they value assets, choose service providers, and handle custody and insurance. Issuers also need to describe how they pick the assets underlying the ETF and how they handle creation and redemption during market stress. The rules ask for full transparency about any conflicts of interest involving affiliated companies. These guidelines are meant to protect investors and ascertain proper risk management. They also give clear instructions on what the SEC expects from ETF issuers. This new framework significantly streamlines the approval process and clarifies regulatory expectations for issuers. Additionally, the SEC has emphasized the importance of robust surveillance-sharing agreements to prevent market manipulation.
The SEC also extended review delays until October 2025 for many applications, including those tied to Bitcoin, Ethereum, Litecoin, and XRP. These delays show that the SEC is working on final rules that use specific measures like market size, liquidity, and trading volume. The goal is to switch from a case-by-case review to a standard approval process. Many see this as a step toward clearer rules, even if it makes it harder for some funds to get approved. The SEC wants to balance supporting innovation with protecting investors and keeping the market stable.
Because of these new rules, issuers of ETFs related to cryptocurrencies like XRP and Solana must start over. Their previous filings are no longer valid. They now have to follow the new standards and resubmit their applications. This includes showing they meet the SEC’s rules on liquidity, custody, and valuation. The shift of oversight to exchanges means issuers have less responsibility for surveillance but still face strict requirements. As a result, issuers must now ensure their compliance with the newly established disclosure and operational standards to avoid delays or rejections.
