SEC New Standards to Simplify Crypto ETF Listings

The United States Securities and Exchange Commission (SEC) approved a new standard for crypto ETF listings on Wednesday.

The standard is created to simplify the working of exchanges in terms of the process followed for crypto ETP listings.

This makes it possible to to avoid the cumbersome route of case-by-case approval being followed so far.

With this change, exchanges can bypass the 19(b) rule filing process. It is a review that can stretch up to 240 days and demands direct SEC approval before an ETF can launch.

Instead of going through the tedious and lengthy review process, the SEC has set up a system that allows exchanges to act more quickly.

Now, when an ETF issuer presents a product idea to exchanges like Nasdaq, NYSE, or CBOE, the exchange can move ahead as long as the proposal meets the generic listing standard.

This means that strategies based on a single token or a basket of tokens can be listed without waiting for individual approval.

New Standards Will Ease Crypto ETF Listings: SEC Chairman

According to the Chairman of the SEC, Paul Atkins, this move is aimed at making it easier for investors to access digital asset products through regulated U.S. markets.

He noted that by approving generic listing standards, the agency is helping U.S. capital markets remain a global leader in digital asset innovation.

At the same time, the SEC approved the Grayscale Digital Large Cap Fund, a fund made up of Bitcoin, Ethereum, XRP, Cardano and Solana.

Furthermore, the SEC also approved a new type of options linked to the Cboe Bitcoin U.S. ETF Index and its mini version.

This step further expands the range of crypto-linked derivatives available in regulated U.S. markets.

How Will SEC General Listing Standard Impact Altcoin Crypto ETF Market?

The SEC’s updated listing standards could clear the path for spot-based altcoin ETFs that have been waiting for regulatory approval to enter the market.

James Seyffart, an ETF research analyst at Bloomberg Intelligence, said in a post on X that this marks the crypto ETP framework the industry had been waiting for.

He added that investors should be prepared for a wave of spot crypto ETP launches in the coming weeks and months.

Furthermore, according to Kristin Smith, President of the Solana Policy Institute, this measure was an “encouraging step.”

She added that establishing clear guidelines amounts to strengthening the rule of law by the SEC.

This is an important development for businesses in the US. Moreover, it also ensures safe access to digital assets for American investors.

She added that the new generic listing standards are a clear positive for U.S. investors, markets, and digital asset innovation, noting that they could help drive the next wave of crypto adoption.

In the past, the SEC has delayed several crypto ETFs while it worked behind the scenes with Nasdaq, NYSE, and Cboe to develop generic listing standards for these products.

Now, experts believe that the new framework could speed up approvals for existing crypto ETF applications in the coming weeks or months.