SEC approval of listing standards can mainstream crypto ETFs

Opinion by: Margaret Rosenfeld, main ineligible serviceman of Everstake

For years, the support of crypto exchange-traded funds (ETFs) has been 1 of the astir contested battles successful fiscal regulation. The archetypal applications for a Bitcoin (BTC) ETF day backmost much than a decade. Only successful aboriginal 2024, aft repeated denials and a tribunal conflict that forced the US Securities and Exchange Commission to reconsider, did spot Bitcoin ETFs yet summation SEC support successful the United States.

The agelong roadworthy to that constituent underscored the regulatory caution, governmental scrutiny and structural complexity surrounding integer plus markets.

Now, conscionable a twelvemonth later, the speech has shifted dramatically. 

The SEC is considering a acceptable of proposals from Nasdaq, NYSE Arca and Cboe BZX to follow generic listing standards for crypto and commodity-based ETFs. These rules would let qualifying funds to database without requiring bespoke SEC support nether SEC Rule 19b-4.

If adopted by the SEC, this alteration would align crypto ETFs with accepted ETFs, which gained their ain generic model done Rule 6c-11 successful 2019. In different words, crypto ETFs whitethorn yet beryllium moving from exceptional attraction into the mainstream.

Why this matters

The existent support process for crypto ETFs is cumbersome. Each caller filing tin instrumentality 240 days oregon longer, involving rounds of nationalist comment, unit reappraisal and often prolonged uncertainty. Generic listing standards would chopped timelines to 60-75 days, making bringing caller products to marketplace acold easier. Speed and ratio would payment each facet of the sector.

Up to now, lone Bitcoin and Ether (ETH) ETFs person cleared the regulatory bar. Generic standards could unfastened the doorway to ETFs tied to Solana (SOL), XRP (XRP), Dogecoin (DOGE) oregon adjacent much innovative structures similar staking-linked products oregon thematic baskets. By creating wide eligibility criteria, similar requiring six months of trading past connected Commodity Futures Trading Commission-regulated futures markets, these proposals guarantee that lone sufficiently mature tokens qualify, portion inactive expanding capitalist choice.

Critics sometimes framework ETFs arsenic a mode of financializing crypto. The reality, however, is that ETFs connection precisely the benignant of transparency, custody safeguards and surveillance mechanisms regulators person agelong demanded. Wrapping integer assets successful an ETF operation means amended disclosures, standardized instauration and redemption processes, and oversight from regulated exchanges. That is simply a safer, much transparent mode for investors to summation vulnerability than offshore exchanges oregon unregulated platforms.

The US has fallen down successful crypto regulatory clarity. The EU’s Markets successful Crypto-Assets framework, Hong Kong’s licensing authorities and Singapore’s superior markets attack each supply much predictable paths for integer plus products. If the SEC finalizes generic listing standards, it volition nonstop a almighty connection that the US intends to lead, not lag, successful integrating integer assets into regulated markets.

What comes next

The SEC could contented a determination successful September 2025. If approved, exchanges whitethorn beryllium capable to database the archetypal question of altcoin ETFs earlier the extremity of the year. That would wide a backlog of astir 100 applications and acceptable the signifier for innovation, including scale funds, thematic baskets and adjacent hybrid ETFs that harvester crypto with equities oregon commodities.

Related: SEC pushes backmost decisions connected Truth Social, Solana, XRP crypto ETFs 

The SEC has already laid the indispensable groundwork. In August 2025, it approved in-kind instauration and redemption mechanisms for crypto ETFs, aligning them with commodity money norms and lowering costs. That determination demonstrated an knowing that operational ratio and capitalist extortion tin spell manus successful hand. Generic listing standards are the logical adjacent step.

It is important to get this right

Skeptics volition reason that crypto does not merit the aforesaid attraction arsenic accepted assets. The intent of regularisation is not, however, to determine which plus classes are worthy. It is to supply transparent, accordant rules that support investors and guarantee marketplace integrity.

Delaying integration lone perpetuates risk. Without accessible, regulated products, investors pursuit vulnerability successful little harmless venues, including exchanges with mediocre custody safeguards, offshore platforms beyond US oversight oregon illiquid backstage placements. By contrast, ETFs bring crypto into the regulatory perimeter, wherever it tin beryllium monitored, disclosed and supervised similar immoderate different fiscal product.

Keep the US astatine the forefront of marketplace innovation

Adopting Rule 6c-11 successful 2019 transformed the ETF industry, unlocking innovation and lowering barriers for issuers. The aforesaid accidental present exists for crypto. The SEC would not endorse immoderate peculiar token oregon task by approving generic listing standards. It would simply supply a predictable model that allows regulated exchanges and issuers to run clearly.

Crypto is not going away. The question is whether investors volition entree it done transparent, regulated products successful US markets oregon done opaque structures overseas. The SEC’s determination connected generic listing standards volition assistance find that answer.

The committee should determination guardant if the US wants to stay the planetary hub of innovation successful superior markets. The clip has travel to bring crypto ETFs afloat into the ETF age.

Opinion by: Margaret Rosenfeld, main ineligible serviceman of Everstake.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.