SEC Approval of Generic Listing Standards Speeds Path for Crypto Spot ETFs

The U.S. Securities and Exchange Commission (SEC) has approved new generic listing standards that will allow exchanges to fast-track the launch of cryptocurrency and spot commodity exchange-traded products (ETPs). The decision marks a major regulatory shift by streamlining the approval process, reducing barriers for asset managers, and opening the door to a wider range of crypto-backed investment products. 

By cutting review timelines from months to weeks, the SEC aims to place U.S. markets at the forefront of digital asset innovation. Industry experts described the move as a watershed moment that could accelerate the mainstream adoption of cryptocurrencies.

Faster Path for Spot Crypto ETFs

On Wednesday, the SEC voted to approve proposed rule changes by the New York Stock Exchange, Nasdaq, and Cboe Global Markets. The decision enables exchanges to adopt generic standards for listing spot commodity-based trust shares, including those tied to cryptocurrencies.

Until now, every spot crypto ETF application required two separate filings and lengthy reviews, stretching launch timelines to as much as 240 days. Under the new framework, compliant products can reach the market in as little as 75 days. According to SEC Chair Paul Atkins, the rules will “maximize investor choice and foster innovation by streamlining the listing process.”

The standards outline eligibility criteria for crypto ETPs. A token must either trade on a market with surveillance-sharing agreements, underlie a Commodity Futures Trading Commission-regulated futures contract with at least six months of history, or already be tracked by an ETF with significant exposure. Exchanges will still need to file a separate rule change if a product falls outside these thresholds.

The first ETFs expected under the new rules are linked to Solana and XRP, filings that have been pending for more than a year. Applications tied to Litecoin, Dogecoin, Avalanche, Chainlink, Polkadot, and BNB are also awaiting review.

Market Reaction and Regulatory Debate

The approval was welcomed across the industry. Bitwise Asset Management president Teddy Fusaro described it as “a watershed moment in America’s regulatory approach to digital assets, overturning more than a decade of precedent since the first bitcoin ETF filing in 2013.” Bloomberg ETF analyst James Seyffart noted that the framework provides “the crypto ETP structure we’ve been waiting for,” adding that new products could launch within weeks.

Legal experts said most issuers would likely pursue the expedited approval pathway tied to futures contracts regulated by the CFTC. Steve Feinour, a partner at Stradley Ronon, said the process “will open up the floodgates,” although not every token currently qualifies. He added that some products could debut as early as October.

Despite broad support, concerns remain within the Commission. SEC Commissioner Caroline Crenshaw warned that the new standards risk flooding markets with products that may not have been fully vetted for investor protection. She argued that the Commission was “passing the buck on reviewing these proposals” in favor of speed.

The decision also clears the way for the Grayscale Digital Large Cap Fund to list, offering diversified exposure to major tokens tracked by the CoinDesk 5 Index. In addition, the SEC approved new options contracts tied to the Cboe Bitcoin U.S. ETF Index, expanding trading tools for institutional investors.