- The SEC’s new standards could slash crypto ETP approval times from 240 days to 75 days.
- Futures-based requirements may unlock Solana, XRP, and others, echoing ETF growth after 2019 reforms.
- ETPs alone won’t spark demand, but stablecoins, tokenisation, and rate cuts could drive rally.
Matt Hougan, Chief Investment Officer at Bitwise, has outlined how the US Securities and Exchange Commission (SEC) is working on generic listing standards that could fundamentally change the approval process for crypto exchange-traded products (ETPs).
Hougan noted that the current system is drawn-out and uncertain, requiring separate SEC approval for each proposed spot crypto ETP, a process that can take up to 240 days. Under the proposed standards, qualifying applications could instead receive automatic clearance within 75 days.
He said the new rules are expected to require the presence of futures contracts on regulated US platforms such as CME, Cboe or Coinbase Derivatives Exchange. That would clear the path for a diverse set of ETPs, including those based on Solana, XRP, Chainlink, Cardano, Avalanche, Polkadot, Hedera, Dogecoin, Shiba Inu, Litecoin and Bitcoin Cash.
Hougan drew parallels with the SEC’s “ETF Rule” introduced in 2019. Prior to that change, ETFs faced one-by-one reviews, limiting growth to an average of 117 launches per year. After the rule, launches climbed to around 370 annually and attracted a wider pool of issuers. He believes the crypto industry could see a comparable acceleration once generic standards are adopted.
Related: Novogratz Declares ‘Season of Solana’ as Markets and Regulators Turn Favourable
Supply Doesn’t Equal Demand
Still, Hougan warned that the appearance of more products will not, by itself, create investor demand. He cited US spot Ethereum ETPs, which began trading in June 2024 but failed to gather significant assets until April 2025, when stablecoins saw growing adoption.
Although August and September have historically been weak months for crypto and regulatory progress has been slow, Hougan argued that factors such as expected interest rate cuts, ETP inflows, tokenisation, and stablecoin momentum could help trigger a strong rally before year-end.
Related: First-Ever US XRP ETF to Launch Under REX-Osprey Partnership
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