SEC Approves New Rules, Opening Floodgates For Spot Crypto ETFs
SEC Approves New Rules, Opening Floodgates for Spot Crypto ETFs
The U.S. Securities and Exchange Commission (SEC) has approved proposed rule changes that will allow national securities exchanges to adopt generic listing standards for new cryptocurrency and other spot commodity exchange-traded products (ETPs). This move opens the door for a surge of new spot crypto ETFs, potentially launching as early as October.
Commission Vote Unlocks New Crypto Opportunities
On September 17, Reuters reported that the SEC voted to approve rule changes submitted by three major exchanges – NYSE, Nasdaq, and Cboe Global Markets – enabling them to establish standardized criteria for listing spot crypto ETFs. This decision removes the last major regulatory obstacle for dozens of new products tied to digital assets such as Solana and Dogecoin.
The listing standards, initially detailed in an SEC order issued in July, outline the requirements that both asset managers and exchanges must meet to gain approval for a new spot crypto ETF without undergoing a prolonged, customized review.
Faster Approval Process
Previously, the SEC reviewed every spot crypto ETF on a case-by-case basis, requiring separate filings from both the listing exchange and the asset manager, often leading to approval timelines of 240 days or longer. Under the new rules, the process will be streamlined, reducing the maximum approval time to 75 days.
Teddy Fusaro, President of Bitwise Asset Management, called the move “a watershed moment in America’s regulatory approach to digital assets, overturning more than a decade of precedent since the first bitcoin ETF filing in 2013.”
SEC Chair Paul Atkins described the approval as a significant step toward fostering innovation and lowering barriers for digital asset products.
First ETFs and Market Outlook
The first ETFs expected to launch under the new framework will track Solana and XRP. While applications for these products were submitted more than a year ago, regulators had only approved spot ETFs for Bitcoin and Ethereum so far, with Bitcoin ETFs debuting in January 2024 after years of regulatory hurdles and legal challenges.
Under the Trump administration, the SEC has taken a more crypto-friendly approach compared to the slower pace under the Biden administration. Steve McClurg, CEO of Canary Capital, noted that although the regulatory “gates are open,” asset managers still need to address marketing, legal filings, and service provider coordination based on the new roadmap.
Expedited Approval Pathways
The generic listing standards provide multiple pathways for asset managers seeking spot ETF approval. According to Steve Feinour, Partner at Stradley Ronon, many asset managers are likely to use the provision for expedited approvals for crypto ETFs with futures contracts regulated by the Commodity Futures Trading Commission (CFTC) for at least six months.
Feinour expects some of the first new ETFs to debut as early as October 2025. He also noted, “Not every token will qualify immediately, but this approval will open up the floodgates for crypto ETF listings.”
If you have a news or deal publication or would like to collaborate on content, columns, or article publications, connect with the Legal Era News Network Team and email us at info@legalera.in or call us on +91 8879634922.
