The U.S. Securities and Exchange Commission has issued new guidance for crypto-related Exchange-Traded Products, creating fresh buzz around the possibility of a Solana ETP. The updated outline, released on July 1 by the Division of Corporation Finance, sets detailed requirements for all future ETP applications involving digital assets.
According to Eleanor Terrett the SEC, ETP issuers must now clearly explain how they calculate their Net Asset Value. They should also justify their choice of benchmark and reveal their custody practices in detail.
Moreover, they should include all agreements with the service providers in the filing. Issuers are also required to disclose their governance framework and describe any possible conflict of interest.
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According to the SEC, this action is one of the Commission’s endeavors to spread light and uniformity in the crypto asset market. ETPs, as the Commission describes them, are types of trust-based investment products that either involve spot crypto assets or contract-related derivatives.
Analysts believe this updated guidance signals a more structured and predictable process for future crypto ETP approvals. It arrives when the crypto market closely observes any indicator of the launches of new products, including one related to Solana.
High institutional participation and the increasing size of its market have seen Solana emerge as a leading candidate for a regulated ETP. Although the new requirements are stiff, they offer a better way to proceed with such applications.
Solana Speculation Grows After SEC’s New ETP Requirements
The release of these guidelines has fueled speculation among investors and crypto enthusiasts. Many view the SEC’s move as a potential green light for the long-anticipated Solana-based ETP.
Participants in the market are hoping that the revised position of the Commission will speed up registrations by asset managers wanting Solana ETP products. The framework will bring clarity to applicants that are much needed, which will accelerate approval timelines.
Not all is well, however, as CRCs have come under fire through comprehensive disclosures from some respondents who find them overly burdensome and discouraging to innovation.
A strident section of the crypto sector fears these new regulations risk restoring regulatory excesses similar to those observed under the prior administration. They demand that innovation be guided by market forces and not by rule checklists.
The SEC’s latest rule changes have sent ripples through the crypto industry, placing Solana at the center of new ETP speculation. While the reaction is mixed, the updated framework offers a clear path forward for issuers looking to enter the regulated crypto investment space.
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