FameEX Hot Topics | SEC Greenlights New Generic Listing Standards to Expedite Crypto ETF Approvals

The U.S. Securities and Exchange Commission (SEC) has approved new standards aimed at expediting the approval process for spot crypto exchange-traded funds (ETFs). Under these new rules, individual applications for crypto ETFs will no longer need to be reviewed separately, potentially speeding up the process significantly. The decision, outlined in SEC filings on major stock exchanges like Nasdaq, NYSE Arca, and Cboe BZX, comes as part of the SEC’s broader effort to streamline the approval process for digital asset products.

These changes are based on Rule 6c-11, which simplifies the approval procedure for exchange-traded products (ETPs) by establishing a generic set of listing standards. As a result, approval timelines for crypto ETFs, which have previously stretched over several months, could now be significantly reduced. SEC Chair Paul Atkins emphasized the importance of these new standards, stating that they help ensure the U.S. capital markets remain at the forefront of digital asset innovation. He also noted that these changes would provide greater access to investors while fostering further innovation.

The move has been widely welcomed by the industry, with many experts seeing it as a major step forward for crypto ETFs in the U.S. Bloomberg ETF analyst James Seyffart called it “the crypto ETP framework we’ve been waiting for,” predicting a surge in new crypto investment products in the near future. The SEC’s approval signals growing acceptance of digital assets and may pave the way for broader cryptocurrency investment opportunities in the U.S.

To be eligible for listing, a crypto spot ETF must either hold a commodity that trades on a market with surveillance access through the Intermarket Surveillance Group, or it must be linked to a futures contract traded on a designated contract market for at least six months. Alternatively, the ETF may qualify if it is already tracked by an existing ETF with significant exposure listed on a national exchange, according to the SEC’s new guidelines.

Despite the positive reception from many in the industry, the decision has raised concerns among some SEC commissioners. Caroline Crenshaw voiced her apprehension about the new standards, warning that they could lead to a flood of inadequately vetted products entering the market. She argued that the SEC’s decision to fast-track approval might compromise investor protection by bypassing essential reviews of these new, relatively untested financial products.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.