SEC Streamlines Process for Crypto Spot ETFs with New Listing Rules

The U.S. Securities and Exchange Commission (SEC) has cleared the way for faster approvals of spot cryptocurrency exchange-traded funds. The agency adopted new generic standards that allow exchanges to list and trade certain commodity-based products, including digital asset trusts, without needing to seek approval for each product individually.

SEC Cuts Delays in Crypto ETF Approvals

Previously, exchanges needed to go through the lengthy Section 19(b) rule change process. That procedure required the Securities and Exchange Commission to evaluate every single application, often stretching over several months before reaching an approval or denial. By approving the new framework, the SEC has removed that step for products that meet the listed requirements.

The updated approach applies across several major markets, including Nasdaq, NYSE Arca, and Cboe BZX. Under Rule 6c-11, the exchanges can now move more quickly, with timelines expected to be significantly shorter than in the past.

Eligibility Rules Under the SEC’s New Crypto Framework

While the new approach speeds up the process, the SEC does not eliminate oversight. To qualify, a trust holding commodities such as cryptocurrencies must meet at least one of several eligibility standards:

• The commodity must be actively traded on a platform that is a member of the Intermarket Surveillance Group. This ensures the exchange has access to shared trading data for proper monitoring.

• The commodity must underlie a futures contract that has been listed on a designated contract market for at least six months. The exchange must also maintain a surveillance-sharing agreement with that market to oversee activity.

•A trust may qualify at its initial listing if there is an existing exchange-traded fund on a national securities exchange with at least 40% of its net asset value linked to the commodity.

Market Experts See New Framework as a Turning Point

The decision comes at a time when several spot cryptocurrency ETF applications remain pending, including those tied to Solana, XRP, Litecoin, and Dogecoin. With the new framework in place, market participants expect the review and listing of such products to accelerate.

SEC Chair Paul S. Atkins said that these newly approved standards help maintain U.S. capital markets’ position as a leader in financial innovation. He noted that “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.”

Industry observers share that view. Bloomberg analyst James Seyffart described the framework as a turning point for crypto exchange-traded products, forecasting a wave of new launches in the near term. 

Bitwise Asset Management president Teddy Fusaro characterised the move as a landmark in U.S. regulation, pointing out that it reverses a decade of precedent dating back to the first bitcoin ETF filing in 2013.

Concerns and Political Context Surround SEC’s Decision

Not all members of the Commission supported the decision. Commissioner Caroline Crenshaw expressed concern that the standards make it too easy for exchanges to introduce new products without extensive review. 

She pointed out that crypto spot markets still carry significant risks and expressed doubt that generic listing standards are suitable for digital asset products at this stage.

Another reason I do not believe generic listing standards are appropriate for digital asset ETPs at this time is due to the unique risks that still exist in the underlying crypto spot markets.

Commissioner Caroline Crenshaw

Meanwhile, the regulatory update also reflects broader political support for digital assets. It aligns with the approach of the Trump administration, which has often expressed a favourable view toward cryptocurrencies, signalling continued interest in fostering innovation in the sector.