- SEC released new guidance on crypto ETF applications
- Asset managers may include Solana, XRP, and $TRUMP
- Approval process expected to become faster and clearer
In July 2025, the regulatory landscape for cryptocurrency investment products in the United States underwent a significant shift. Under new leadership, the SEC issued guidance that has implications for asset managers aiming to launch exchange-traded funds tied to various crypto assets. This move opens up broader possibilities for cryptocurrencies like Solana, Ripple’s XRP, and even meme-based tokens such as Trump’s $TRUMP. Market participants and ETF experts suggest that the updated stance may accelerate the approval process for future crypto ETFs.
SEC opens path for Solana, XRP, and memecoin-based ETFs
The SEC issued its latest guidance on July 1, outlining new requirements for exchange-traded products linked to digital assets. This guidance invites a potential wave of new ETF applications, especially for cryptocurrencies that have not yet received mainstream exposure through traditional investment vehicles. According to Andy Martinez, CEO of Crypto Insights Group, the regulatory update represents a near-complete opening of the “floodgates” for asset managers seeking to introduce crypto-based ETFs.
The regulatory changes follow the appointment of SEC chairman Paul Atkins, whose approach stands in contrast to former chair Gary Gensler. While Gensler was known for resisting approval of spot Bitcoin ETFs, Atkins has positioned the commission to work more proactively with the crypto sector. The commission’s new tone is expected to trigger broader participation from institutional and retail investors seeking regulated exposure to a wider array of crypto assets.
SEC leadership marks a departure from Gensler’s policies
Paul Atkins, appointed by President Donald Trump, now leads the SEC in a direction more favorable to decentralized finance. His administration has introduced guidance that asset managers interpret as a supportive signal for crypto investment products. The contrast is stark compared to the previous leadership under Gensler, whose opposition to spot Bitcoin ETFs drew criticism from industry participants.
In 2024, the SEC approved the first spot Bitcoin ETFs, allowing 11 firms to enter the market with products that directly track the cryptocurrency’s current market price. Later that same year, Ethereum ETFs also gained approval. These landmark approvals demonstrated a gradual, albeit cautious, shift in regulatory posture. With the new July 2025 guidance, that shift accelerates.
SEC guidance supports new crypto ETF submissions
The updated instructions from the SEC offer asset managers a more transparent framework for applying to list ETFs that include cryptocurrencies like Solana and Ripple’s XRP. This clarity is expected to reduce the time needed to bring such funds to market. As of July 7, there are 76 crypto ETFs listed in the United States, most of which are tied to Bitcoin or Ether. Experts such as Aniket Ullal from CFRA Research believe that new products featuring Solana and Ripple will soon join the list.
The SEC guidance emphasizes transparency in disclosure documents, calling for descriptions of crypto assets and trading platforms written in plain language. This includes potential conflicts of interest and details specific to the crypto industry that do not align neatly with standards used in equities or bonds. Although the disclosure framework is similar to other asset classes, the SEC acknowledges that digital assets come with unique complexities.
disclosure rules may challenge smaller crypto firms
Vin Molino, COO of Crypto Insights Group, notes that while large traditional firms may adapt quickly to the SEC’s disclosure expectations, smaller crypto-focused asset managers may face difficulties. The guidance increases the need for industry-standard transparency, which can be resource-intensive for firms unfamiliar with conventional regulatory structures.
The guidance is not yet formalized as a rule but functions as a clear directive under the current SEC leadership. It signals that the commission intends to manage the evolving crypto landscape by encouraging regulated products rather than reacting after innovations emerge. This is a significant departure from the reactive policies previously criticized during Gensler’s tenure.
SEC prepares for growing ETF backlog tied to cryptocurrencies
Martinez suggests the SEC is already facing a substantial backlog of ETF applications based on various digital assets. He anticipates that the list will grow longer in the coming months, despite the expectation that the new framework will help accelerate the review and approval timeline. The current regulatory climate is therefore set to change the pace and diversity of crypto ETF launches, with more coins likely to be added beyond Bitcoin, Ether, Solana, and Ripple.
The approval of Bitcoin ETFs and subsequent Ethereum-based funds in 2024 laid the groundwork for these developments. Now, with the SEC guidance released in July 2025, asset managers have a more concrete path to introduce ETFs based on additional coins, including potential meme tokens such as $TRUMP.
Conclusion
The SEC’s July 2025 guidance marks a notable shift in the commission’s stance on crypto assets. By offering clarity to asset managers and inviting broader ETF participation, the commission opens the door for greater adoption of cryptocurrencies within regulated financial markets. Under Chairman Paul Atkins, the SEC signals a willingness to support a growing and diversifying crypto ETF ecosystem while reinforcing disclosure and compliance standards. The ongoing evolution of the regulatory framework will play a key role in shaping how investors engage with the next wave of digital asset products.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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