The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward integrating crypto into the traditional financial ecosystem. On June 25, 2025, the agency released a detailed guidance document that outlines regulatory expectations for crypto-linked exchange-traded funds (ETFs).
This move marks a shift from selective approvals to a more structured and transparent framework, providing a foundation for the broader rollout of crypto ETFs in the United States.
A Turning Point for Crypto Regulation
The new guidance introduces clarity on how crypto ETFs should operate in areas such as asset custody, investor disclosures, and staking yield transparency. Until now, crypto ETFs were approved case-by-case, often facing delays or rejections due to regulatory uncertainty.
The SEC’s publication sets the tone for a more standardized approval process. According to the agency, crypto ETF applications that meet the outlined criteria could now be reviewed and cleared in approximately 75 days—down from the average of 240+ days in recent years.
What the New Guidance Includes
The 12-page document covers several key areas:
- Custody: ETF issuers must ensure that crypto assets are held by qualified custodians under secure and segregated structures.
- Risk Disclosures: Fund managers are expected to clearly disclose risks related to price volatility, smart contract functionality, regulatory pressures, and market liquidity.
- Staking Transparency: For ETFs that include staking components, managers must explain how yield is generated, outline validator risks, and account for events like slashing.
- Approval Timeline: A clearer review process promises faster approvals for well-structured products.
Early Market Response: Solana ETF Launch
The first significant response came from REX Financial, which launched a Solana-linked ETF less than 24 hours after the SEC’s announcement. The product includes integrated staking features and recorded $12 million in day-one trading volume.
Its structure is designed to track the price of Solana while generating passive yield through network staking, estimated at around 5% annualized—though this figure remains variable and market-dependent.
This ETF marks a notable evolution in the types of digital asset products now making their way into regulated portfolios.
Implications for Investors and Fund Issuers
This regulatory update opens several doors:
- Product Diversification: Investors now have the option to gain crypto exposure through conventional brokerage accounts without navigating DeFi platforms or custodial wallets.
- Institutional Access: With increased regulatory clarity, institutional interest in crypto ETFs is expected to grow, potentially boosting market liquidity and asset legitimacy.
- Portfolio Integration: Crypto-linked ETFs can now be considered alongside traditional ETFs, stocks, and bonds—particularly for long-term investors seeking exposure to digital assets with some regulatory oversight.
Outlook
The SEC’s guidance represents more than a policy shift; it reflects the broader maturation of crypto as an asset class. As ETFs expand to include Ethereum, Layer 2 tokens, or staking pools, the divide between traditional finance and decentralized assets continues to narrow.
Whether or not one chooses to invest in crypto, the framework signals an important structural development in financial markets—and one that may influence global regulatory efforts in the coming years.