SEC's new rules "accelerate" the approval of encryption ETFs, but retail investors should be cautious.

down_only_larry · 2025-11-24T08:59:15+00:00

The SEC recently adjusted its rules to accelerate the approval process for Spot ETFs, allowing eligible commodity trust stocks to be listed directly. However, regulators have warned that speeding up approvals does not mean a relaxation of risk controls; investors need to conduct proper risk assessments and information inquiries to avoid blindly following trends.

down_only_larry

2025-11-24 08:59:15

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Core Updates

The SEC changed the rules of the game last week — as long as a certain cryptocurrency asset has a futures market, the approval time for a spot ETF can be shortened from several years to a few months. Sounds impressive, right? But regulators and analysts are pouring cold water on it.

What has changed?

The new standard allows exchanges to directly list eligible commodity trust shares without repeatedly submitting S-1 and 19b-4 forms. Bloomberg ETF analyst Seiffart described this as a positive step towards the “spot crypto ETP wave.”

The market has set its sights on 22 cryptocurrencies with Coinbase futures, including XRP, Solana, and Stellar— all popular candidates for conversion to spot ETFs recently.

Danger Signal🚨

SEC Commissioner Caroline Crenshaw clearly pointed out: Accelerating the approval process does not mean loosening risk controls. She is concerned that this will allow “unverified new products” to quickly enter the market, bypassing the investor protection reviews that should be in place.

Finance professor Kim from UC Santa Clara emphasized that the due diligence obligations of the Securities Act of 1933 and the Investment Company Act of 1940 remain in effect, and exchanges and issuers must continue to be responsible for information disclosure and market supervision.

Advice for Retail Investors

✓ Read the prospectus of each ETF carefully. ✓ Confirm whether the exchange's supervision mechanism is complete ✓ Check liquidity data ✓ Evaluate each crypto ETF individually, don't follow the trend blindly.

Conclusion: This is a good thing, but don't be a fool. Fast approval ≠ good product. Doing your own homework is the way to go.

XRP-2%

SOL-2,95%

XLM-2,73%

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