SEC Moves Closer to Decision on XRP and Solana ETFs

These ETFs, if approved, will join the ranks of spot Bitcoin and Ethereum ETFs but represent the first serious regulatory engagement for altcoin-backed ETFs. The decision to open public proceedings is a big step toward potential approval, especially in light of the SEC’s shifting posture under the Trump administration and Chair Paul Atkins. 

Meanwhile, crypto infrastructure company Fairmint is pushing for modernization in private equity markets with a detailed proposal to the SEC’s Crypto Task Force. The proposal called for blockchain-based settlement systems, investor self-custody, and the creation of a regulated DeFi sandbox. At the same time, Gemini Trust launched a scathing rebuke of the CFTC, accusing the agency of pursuing false charges based on a discredited whistleblower report. The letter shed some light on the still ongoing tension between regulatory bodies and crypto firms.

XRP and Solana ETFs Gain Momentum

The US Securities and Exchange Commission (SEC) initiated public comment periods for two proposed crypto exchange-traded funds (ETFs) from asset management firm Franklin Templeton. The firm wants to list the funds on the Chicago Board Options Exchange’s BZX platform. The ETFs in question are the Franklin XRP ETF and the Franklin Solana ETF. The move follows a proposed rule change that was submitted by the Cboe BZX Exchange in March, which the SEC initially delayed in April before taking further action this week.

(Source: SEC)

While the SEC has yet to make a decision, the institution of proceedings is a key regulatory step in the process and indicates that the agency is now formally considering public input on the matter. In its notice, the Commission explained that opening the proceedings does not imply any final stance on the ETFs, and instead seeks to encourage feedback from the public and industry stakeholders. Once the notice is published in the Federal Register, the SEC will have 35 additional days to reach a verdict. This then pushes the new deadline into July.

Franklin Templeton is not alone in its ambitions. Other firms including Bitwise, ProShares, and 21Shares also filed to launch ETFs tied to altcoins like XRP and Solana. Though the SEC already approved spot ETFs for Bitcoin and Ethereum, it has not yet done so for other major cryptocurrencies. 

These filings were made at a time when the SEC is reportedly adopting a more lenient stance toward digital assets under the Trump administration and its appointed chair, Paul Atkins. This includes the withdrawal of several high-profile enforcement actions against crypto companies.

Whether this relaxed regulatory climate will pave the way for ETFs tied to tokens like XRP and Solana is still uncertain. However, the interest in these products appears to be growing, particularly with political support mounting. 

Fairmint Pushes SEC to Modernize Private Equity

Meanwhile, crypto-native companies are stepping up efforts to shape the future of digital asset regulation, and transfer agent Fairmint recently submitted a comprehensive proposal to the US SEC’s Crypto Task Force. Addressed to SEC Chairman Paul Atkins and Commissioner Hester Peirce, the seven-part proposal advocates for overhauling what Fairmint describes as outdated and inefficient back-end infrastructure used in private securities administration. 

(Source: Fairmint)

The proposal calls for standardized infrastructure to allow interoperability between transfer agents, the use of blockchain for real-time regulatory visibility, and enabling investor self-custody while still maintaining compliance controls.

Fairmint also urged a move away from traditional wealth-based investor accreditation standards, and suggested a knowledge-based approach instead. Another key point includes the creation of a regulated decentralized finance (DeFi) sandbox to encourage more responsible innovation in US markets. 

The initiative reflects the broader frustration in the private equity space, where large companies continue to rely on spreadsheet software lacking built-in settlement mechanisms. In contrast, public companies have access to more sophisticated, regulated infrastructure. Fairmint’s CEO, Joris Delanoue, criticized the current system by pointing out that billion-dollar cap tables are still being managed in Excel, which leads to inefficiencies and compliance risks.

The global private equity market was valued at $5.3 trillion in 2023 and projected to reach $6 trillion by the end of 2024. It represents a massive opportunity for digital transformation. Fairmint’s client list includes many well known players like wallet infrastructure provider Privy and social networking platform Bloom Network.

Meanwhile, the SEC’s Crypto Task Force has been actively engaging with the industry, and hosted two recent roundtables to gather input on tokenization and decentralized finance. These discussions align with emerging trends in financial markets, as firms like Robinhood are exploring blockchain technology to tokenize traditional financial instruments. Robinhood CEO Vladimir Tenev recently stated that tokenizing both public and private equities is a key part of the company’s roadmap, particularly as it expands services to European investors. 

Tokenized stocks market overview (Source: RWA.xyz)

Gemini Blasts CFTC Over False Charges

In other regulation-related news, Gemini Trust accused the Commodity Futures Trading Commission (CFTC) of pursuing baseless charges against the crypto exchange in 2022 to boost the careers of its litigators. In a letter that was sent to CFTC Inspector General Christopher Skinner, Gemini alleged that the CFTC’s Division of Enforcement relied on a flawed whistleblower report to bring false charges related to the company’s proposed Bitcoin futures contract. 

According to Gemini, the charges were based on a submission from Benjamin Small, the firm’s former operating chief, who was dismissed in 2017 for allegedly concealing losses from a rebate fraud scheme involving several trading entities and executives.

Part of Gemini’s letter that was sent to the CFTC

The exchange argued that Small was motivated by personal grievance after his termination, and started a malicious campaign against Gemini by submitting a whistleblower report riddled with falsehoods. Gemini claimed that Small’s accusations, including that the exchange failed to disclose the susceptibility of its futures product to market manipulation, were taken at face value by CFTC staff, prompting a multi-year investigation. 

The agency eventually sued Gemini in June of 2022 for making false or misleading statements during its 2017 application process for launching the Bitcoin futures contract. Gemini settled the case with a $5 million fine in January of 2025, without admitting or denying the charges, saying at the time that it had no viable alternative.

Gemini now argues that the Bitcoin futures contract in question ran smoothly for 19 months and was never linked to any manipulation, which completely undermines the CFTC’s original claims. The exchange also accused the Division of Enforcement of selectively weaponizing the Commodity Exchange Act to manufacture a high-profile enforcement action. The letter credited acting CFTC chair Caroline Pham with taking constructive steps to reform the enforcement division.

Gemini concluded its letter by urging the CFTC to commit to long-term reforms to prevent future misuse of authority and pledged to support the agency’s efforts to improve its internal practices.