Nikolas Sargeant
The U.S. Securities and Exchange Commission has approved new generic listing standards that will significantly accelerate the approval process for cryptocurrency exchange-traded funds. The groundbreaking decision, announced Wednesday through filings covering major exchanges including Nasdaq, NYSE Arca, and Cboe BZX, eliminates the need for individual assessment of each crypto ETF application under Rule 6c-11.
SEC Chair Paul Atkins emphasized the strategic importance of the move, stating that these standards ensure American capital markets remain the global leader in digital asset innovation. The streamlined process is designed to maximize investor choice while reducing regulatory barriers that have previously delayed crypto product launches for months. This development directly addresses the bottleneck that has slowed the introduction of digital asset investment products in traditional markets.
The timing is particularly significant as numerous high-profile cryptocurrency ETF applications await approval, including products for Solana, XRP, Litecoin, and Dogecoin. Additional applications for Avalanche, Chainlink, Polkadot, and BNB also stand to benefit from the expedited process. Industry experts, including Bloomberg ETF analyst James Seyffart, have hailed this as the crypto investment framework the market has been anticipating.
Under the new standards, crypto spot ETFs must meet specific eligibility criteria, including holding commodities that trade on Intermarket Surveillance Group markets or underlying futures contracts on designated markets for at least six months. Despite the positive industry reception, SEC Commissioner Caroline Crenshaw raised concerns about potential risks, warning that the fast-track approach might compromise thorough vetting of products designed to protect investors.
Recent Market Breakthroughs
The SEC's approval of generic listing standards comes on the heels of recent crypto ETF developments that preceded this regulatory milestone. The Rex-Osprey Dogecoin ETF (DOJE), which launched last Thursday as the first memecoin exchange-traded fund in U.S. history, operated under the more restrictive Investment Company Act of 1940 framework rather than benefiting from the streamlined process now available. Similarly, Bitwise's innovative "Stablecoin & Tokenization ETF" filing, which combines traditional equity exposure with direct cryptocurrency holdings, was submitted under the previous individual approval system.
These earlier launches and filings highlight exactly why the new generic standards represent such a significant advancement for the industry. While DOJE had to navigate the more complex 40 Act structure and Bitwise's hybrid fund faces potential delays until October or November under the old system, future similar products will benefit from the expedited approval pathway. The success of these pioneering products, combined with the growing stablecoin market ($290 billion) and tokenization sector ($76 billion), demonstrates the market demand that the new streamlined framework is designed to meet more efficiently.
