tl;dr
The SEC's decision to withdraw delay notices for major crypto ETFs has sparked market optimism, paving the way for institutional adoption and new regulatory standards effective October 1.
**SEC Withdraws Delay Notices for Key Crypto ETFs, Boosting Market Optimism**
The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward mainstreaming cryptocurrency by withdrawing all delay notices for several crypto exchange-traded funds (ETFs), including those tracking Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), and Cardano (ADA). This move comes as the regulator finalizes its general listing standards for crypto ETFs, set to take effect on October 1, and signals growing momentum for institutional adoption of digital assets.
### **SEC Withdraws Delay Notices for Key Crypto ETFs**
The SEC’s decision to drop extended review periods for multiple ETFs marks a pivotal moment for the crypto market. Notable ETFs affected include those from major firms like Bitwise, VanEck, Fidelity, and Invesco Galaxy for Solana, as well as Bitwise, Franklin, and WisdomTree for XRP. Additionally, delay notices for HBAR, Litecoin, and Polkadot (DOT) ETFs from providers such as Canary, CoinShares, and 21Shares have been revoked.
This development aligns with the SEC’s updated guidelines, which aim to streamline the approval process for crypto ETFs while ensuring investor protections. The regulator’s shift reflects a broader willingness to engage with the cryptocurrency sector, despite lingering regulatory uncertainties.
### **New General Listing Standards Take Effect**
The SEC’s revised rules, effective October 1, establish a framework for listing crypto ETFs on U.S. exchanges. These standards address concerns around market manipulation, liquidity, and transparency, offering a clearer path for issuers to bring products to market. For instance, the **Canary spot Litecoin ETF** is set to list on Nasdaq, with trading expected to commence in the coming days.
The updated guidelines also pave the way for **staking on Ethereum ETFs**, a feature that has long been a point of contention. The SEC has withdrawn delay notices for Ethereum ETFs from BlackRock’s iShares, Fidelity, and other major players, signaling a potential shift in how staking rewards are handled in regulated products.
### **Ethereum ETFs and Staking**
One notable example is the **REX-Osprey ETH + Staking ETF**, which recently began trading under the Investment Company Act of 1940. This ETF provides direct exposure to Ethereum while distributing staking rewards generated from on-chain activity. The New York Stock Exchange (NYSE) Arca highlighted that the product will operate under the SEC’s generic listing standards, allowing it to function without relying on older, more restrictive approval terms.
In addition, major exchanges like Nasdaq, CBOE BZX Exchange, and NYSE Arca have filed amendments to their Bitcoin and Ethereum ETFs to align with the new rules. This indicates a concerted effort to adapt to the evolving regulatory landscape.
### **Market Reaction to the News**
The crypto market has responded positively to the SEC’s announcements, with notable price increases across several assets. **XRP** surged 4% in the past 24 hours, trading at $2.90, while **Solana (SOL)** rebounded to $210, up over 3%. Trading volume for SOL jumped 46%, reflecting heightened trader interest. **Hedera (HBAR)** also rose 2%, reaching $0.2152, with a 24-hour range of $0.2077 to $0.2168.
Analysts suggest that the SEC’s actions could catalyze further innovation in the crypto space, potentially leading to more ETF approvals and increased institutional participation. However, challenges remain, including ongoing debates about the classification of certain tokens and the long-term viability of staking-based products.
### **What’s Next?**
With the SEC’s final deadline for crypto ETF approvals set for October, market participants are closely watching for additional rulings. The regulator’s willingness to adapt its approach may pave the way for a new era of crypto investment products, bridging the gap between traditional finance and digital assets.
As the industry navigates this transformative phase, the SEC’s decisions will continue to shape the trajectory of cryptocurrency adoption in the U.S. and beyond. For now, the withdrawal of delay notices and the push for staking-friendly ETFs signal a growing recognition of crypto’s role in the financial ecosystem.