SEC simplifies listing rules for cryptocurrency ETFs

Key points:

• The SEC has approved uniform listing standards for spot cryptocurrency ETFs on Nasdaq, Cboe, and NYSE Arca.
• Exchanges will be able to list cryptocurrency ETFs without individual applications, which speeds up the approval process.
• The new standards apply to ETFs on Solana, XRP, Litecoin, Dogecoin, and other popular crypto assets.

The US Securities and Exchange Commission (SEC) has adopted new rules simplifying the listing process for spot cryptocurrency ETFs. The decision applies to the largest exchanges — Nasdaq, Cboe BZX, and NYSE Arca. Now they do not need to submit individual applications for each product: it is enough to meet general standards.

SEC Chairman Paul Atkins said the new rules reduce “barriers to access digital asset products” and “maximize investor choice.” According to him, the decision will maintain the competitiveness of US markets and accelerate the launch of new ETFs.

What has changed

SEC document (Release No. 34-103995) introduces uniform listing standards for cryptocurrency ETFs. They are defined as securities issued by trusts that reflect the value of one or more underlying assets — cryptocurrencies, futures, or funds.

Source: www.sec.gov

Exchanges can now list such ETFs under Rule 19b-4(e) without separate SEC review. This significantly reduces the time frame — previously, approval took months.

An ETF will be approved if the asset is traded on a platform that is part of the Intermarket Surveillance Group or is used in futures with a trading history of at least six months. An important condition is the existence of joint surveillance agreements.

Exchanges are required to publicly disclose the structure of the funds and the redemption rules.

Which assets are awaiting listing

Under the new standards, applications for cryptocurrency ETFs linked to assets such as Solana, Ripple, Litecoin, and Dogecoin have received expedited approval. Products based on Avalanche, Chainlink, Polkadot, and BNB are expected to be reviewed.

Bloomberg analyst James Seyffart called the SEC’s decision “the crypto ETP framework we’ve been waiting for.” He expects a whole wave of new investment products to appear.

Source: X.com

Concerns within the SEC

Not all members of the commission supported the changes. Commissioner Caroline Crenshaw warned that the new standards could lead to a flood of products that have not been sufficiently vetted for investor protection.

According to her, the SEC has partially shifted the responsibility for risk assessment to exchanges, prioritizing speed of launch.