SEC Approves Generic Standards for Faster Crypto ETF Listings

The SEC’s approval of generic listing standards for ‘Commodity Based Trust Shares’ marks a pivotal moment in America’s regulatory approach to digital assets, overturning more than a decade of precedent since the first Bitcoin ETF filing in 2013. Under the new framework, applications from major exchanges including Nasdaq, NYSE Arca, and Cboe BZX will no longer require case-by-case evaluation, instead following standardized criteria under Rule 6c-11. This represents a fundamental departure from the previous system that required two separate filings—one from the exchange listing the product and another from the asset manager—creating significant administrative bottlenecks.

SEC Chair Paul Atkins emphasized the strategic importance of this decision, stating that by approving these generic listing standards, the Commission is ensuring that U.S. capital markets remain the best place in the world to engage in digital asset innovation. “This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets,” Atkins declared in a separate statement accompanying the Wednesday filings.

The new standards establish clear eligibility requirements for spot crypto ETFs seeking approval. To qualify, a cryptocurrency must either trade on a market that is part of the Intermarket Surveillance Group, underlie a futures contract listed on a designated contract market for at least six months with a surveillance sharing agreement in place, or be tracked by an ETF that has at least 40% exposure on a listed national securities exchange. Exchanges seeking to list crypto ETFs that don’t meet these approved standards must still submit rule filings to the SEC for individual consideration.

Industry experts immediately hailed the decision as a potential catalyst for market growth. Bloomberg ETF analyst James Seyffart described it as “the crypto ETP framework we’ve been waiting for,” predicting “a wave of spot crypto ETP launches in the coming weeks and months.” Teddy Fusaro, President of Bitwise Asset Management, called it “a watershed moment” that fundamentally changes the regulatory landscape for digital assets in the United States.

The approval comes as numerous spot ETF applications await SEC decisions, including products tracking Solana (SOL), Ripple (XRP), Litecoin (LTC), with several deadlines approaching in October for Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), and BNB. ETFs tracking Solana and XRP are expected to be among the first to launch under the new rules, as asset managers began filing applications for these products over a year ago. To date, regulators have only approved ETFs tracking Bitcoin (BTC) and Ethereum (ETH).

Despite the streamlined process, industry leaders caution that significant work remains before new products can reach the market. Steve McClurg, CEO of Canary Capital, noted that “the gates are open, but there’s still a lot of work to be done. Marketing plans, legal filings, and work with service providers all have to be addressed, based on the new roadmap.” The reduced timeline—from 240 days maximum to 75 days—still requires careful coordination between asset managers, exchanges, and regulatory bodies.

Not all SEC commissioners supported the new approach. Commissioner Caroline Crenshaw raised significant concerns about investor protection, warning that the generic standards could lead to a market flooded with products that haven’t been properly vetted. “The Commission is passing the buck on reviewing these proposals and making the required investor protection findings, in favor of fast-tracking these new and arguably unproven products to market,” Crenshaw stated, highlighting the tension between innovation acceleration and regulatory oversight.

The SEC’s decision represents a careful balancing act between fostering innovation in the rapidly evolving digital asset space and maintaining the integrity of U.S. capital markets. By establishing clear, standardized criteria rather than continuing with ad-hoc evaluations, the Commission aims to provide market participants with predictable guidelines while still maintaining oversight through the surveillance sharing agreements and eligibility requirements that form the foundation of the new standards.