Regulators Drive Market Growth: Standardized ETF Guidelines Accelerate Crypto Advancements

The U.S. Securities and Exchange Commission (SEC) has given the green light to general listing standards for cryptocurrency exchange-traded funds (ETFs), representing a major turning point in how digital assets are regulated. With this change, which was put forward by leading exchanges like Nasdaq,

, and NYSE Arca, commodity-backed crypto ETFs can now be launched without each one needing the SEC’s individual approval. This new approach is based on certain cryptocurrencies, such as and , being treated as commodities rather than securities. As a result, the process becomes more efficient and could lead to a rapid increase in the number of altcoin ETF listings.

This regulatory update is highly significant. In the past, the drawn-out and sometimes unclear approval process for crypto ETFs delayed the launch of new products. Now, with standardized listing requirements, qualifying crypto ETFs can be listed on exchanges as long as they follow the set guidelines, eliminating the need for direct SEC review each time. SEC Chair Paul Atkins noted that this advancement promotes both innovation and investor choice, helping make U.S. financial markets more supportive of

developments.

Experts at Bloomberg have reacted positively, giving a 90% chance that ETFs tracking altcoins like

(DOGE), (ADA), (DOT), (HBAR), and (AVAX) will be approved before the end of 2025. The likelihood of approval for Solana, XRP, and ETFs is estimated at 95%, and a broader crypto index ETF could receive the go-ahead even sooner. Thanks to these clearer rules, there has been a surge in ETF filings, with over 31 altcoin ETF submissions to the SEC reported in early 2025 alone.

Investor attitudes are also shifting to favor altcoin ETFs, opening the door for more competition and potentially lower ETF fees. With exchanges now able to launch new offerings more swiftly, issuers are expected to cut costs and expand the range of investment opportunities. This evolution may also boost the overall crypto market by attracting more institutional investors and increasing liquidity. Notably, the REX Osprey Solana Staking ETF has met regulatory standards and is poised to become the first U.S.-listed fund featuring crypto staking.

However, some obstacles remain. The SEC still needs to clarify its position on staking for Ethereum-based ETFs, and several pending proposals must overcome legal and structural issues. Commentators warn that even with a more accommodating regulatory climate, market performance doesn’t always reflect regulatory progress. For instance, although

ETFs have consistently attracted positive inflows, their price movements have lagged behind those of ETFs. Additionally, whether the market will see a sustained “altcoin season” is uncertain, with some analysts predicting that altcoins’ appeal may wane as Bitcoin’s dominance persists.

The changes in U.S. regulation are part of a wider international trend toward harmonizing crypto oversight. In the European Union, the Markets in Crypto-Assets (MiCA) regulation has provided a unified legal structure for cryptoassets, while the U.S. GENIUS Act has introduced even stricter regulations for stablecoins. These actions suggest an increasing global convergence in crypto policy, which may reduce regulatory arbitrage and offer clearer direction for global participants. As the U.S. continues refining its approach, the SEC’s recent move on standardized ETF listings could become a blueprint for greater regulatory clarity in the digital asset industry.