The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward potentially approving the first-ever exchange-traded funds (ETFs) tied to XRP and Solana. They have initiated public comment periods for two proposals submitted by Franklin Templeton. These ETFs, if approved, would mark a groundbreaking expansion of regulated crypto investment products beyond Bitcoin and Ethereum. This reflects the SEC’s evolving stance under the Trump administration and Chair Paul Atkins.
At the same time, broader developments in the regulatory landscape highlight growing efforts to modernize financial infrastructure. Tensions between regulators and crypto firms are also being addressed. From Fairmint’s proposal for private equity modernization to Gemini’s rebuke of the CFTC, the industry is at a crossroads. It seeks to balance innovation with oversight.
Public Comment Period Opens for XRP and Solana ETFs
The SEC has opened public proceedings for two proposed crypto ETFs from Franklin Templeton: the Franklin XRP ETF and the Franklin Solana ETF. These funds aim to list on the Chicago Board Options Exchange’s BZX platform. This follows a rule change proposal submitted by the Cboe BZX Exchange in March. After an initial delay in April, the SEC’s decision to solicit public feedback signals a formal step forward in evaluating these products.
While no final decision has been made, the initiation of public comment periods is a critical milestone. The SEC emphasized that this move does not imply a predetermined stance. Instead, it seeks input from stakeholders and the public. Once the notice is published in the Federal Register, the agency will have 35 additional days to reach a verdict, pushing the deadline into July.
Franklin Templeton is not alone in its pursuit of altcoin-backed ETFs. Other prominent firms, including Bitwise, ProShares, and 21Shares, have also filed proposals for ETFs tied to XRP and Solana. While the SEC has already approved spot ETFs for Bitcoin and Ethereum, it has yet to greenlight similar products for other major cryptocurrencies.
This development comes amid a perceived shift in the SEC’s approach to digital assets under the Trump administration. The administration has withdrawn several high-profile enforcement actions against crypto companies. Whether this more lenient regulatory climate will pave the way for altcoin ETFs remains uncertain. However, the growing interest in these products suggests momentum is building.
Fairmint Advocates for Private Equity Modernization
In parallel, Fairmint, a crypto-native infrastructure company, has submitted a comprehensive proposal to the SEC’s Crypto Task Force. The proposal calls for sweeping reforms to modernize private equity markets. Addressed to SEC Chairman Paul Atkins and Commissioner Hester Peirce, the seven-part proposal advocates for standardized, blockchain-based infrastructure. This would enhance efficiency, transparency, and compliance in private securities administration.
Key recommendations include:
- Blockchain-based settlement systems for real-time regulatory visibility.
- Investor self-custody while maintaining compliance controls.
- A shift from wealth-based accreditation standards to knowledge-based criteria.
- The creation of a regulated DeFi sandbox to foster responsible innovation.
Fairmint’s CEO, Joris Delanoue, criticized the current reliance on outdated tools like spreadsheets. He pointed out inefficiencies and compliance risks. With the global private equity market valued at $5.3 trillion in 2023 and projected to reach $6 trillion by 2024, the potential for digital transformation is immense.
The SEC’s Crypto Task Force has been actively engaging with the industry, hosting roundtables to discuss tokenization and decentralized finance. These discussions align with emerging trends, as firms like Robinhood explore blockchain technology to tokenize traditional financial instruments.
Gemini Challenges CFTC Over False Charges
In another regulatory showdown, Gemini Trust has accused the Commodity Futures Trading Commission (CFTC) of pursuing baseless charges against the exchange. This is based on a discredited whistleblower report. In a letter to CFTC Inspector General Christopher Skinner, Gemini alleged that the agency’s Division of Enforcement relied on flawed accusations from Benjamin Small, the company’s former operating chief, who was dismissed in 2017 over a rebate fraud scheme.
According to Gemini, Small’s whistleblower report contained falsehoods, including claims that the exchange failed to disclose vulnerabilities in its proposed Bitcoin futures contract. The CFTC pursued these allegations, leading to a multi-year investigation and a lawsuit in June 2022. Gemini settled the case in January 2025 with a $5 million fine. They neither admitted nor denied the charges.
Gemini now argues that the Bitcoin futures contract operated smoothly for 19 months without any evidence of manipulation. This undermines the CFTC’s original claims. The exchange accused the Division of Enforcement of selectively weaponizing the Commodity Exchange Act to manufacture a high-profile enforcement action.
In its letter, Gemini urged the CFTC to implement long-term reforms to prevent future misuse of authority. They pledged to support efforts to improve internal practices. Acting CFTC Chair Caroline Pham was credited with taking constructive steps to reform the enforcement division.
What’s Next for Crypto Regulation?
The SEC’s consideration of XRP and Solana ETFs marks a pivotal moment for the crypto industry. It signals a potential shift toward broader acceptance of altcoin-backed investment products. Meanwhile, initiatives like Fairmint’s proposal and ongoing debates over regulatory practices highlight the need for modernized frameworks. These changes are necessary to accommodate the rapid evolution of digital assets.
As the SEC and other agencies navigate these complex issues, the outcome of these developments could shape the future of crypto regulation and innovation in the United States. For now, all eyes are on the SEC’s upcoming decision and the broader regulatory landscape.
Stay informed about the latest updates on XRP and Solana ETFs, as well as ongoing efforts to modernize financial infrastructure.
