SEC’s Proposed Generic Listing Standards Could Mainstream Crypto ETFs in US Markets

SEC Proposes Generic Listing Standards to Streamline Crypto ETF Approvals

After years of cautious regulatory scrutiny and repeated denials, the US Securities and Exchange Commission (SEC) is poised to significantly alter the landscape for cryptocurrency exchange-traded funds (ETFs). In early 2024, the SEC finally approved spot Bitcoin ETFs following a protracted legal battle, marking a pivotal moment for digital asset investment products in the United States.

Now, the SEC is considering proposals from major exchanges—including Nasdaq, NYSE Arca, and Cboe BZX—to adopt a generic listing framework for crypto and commodity-based ETFs. This approach would allow qualifying funds to list without requiring individual SEC approval under Rule 19b-4, effectively bringing crypto ETFs under the same streamlined regulatory process that traditional ETFs have enjoyed since the adoption of Rule 6c-11 in 2019.

Why Generic Listing Standards Matter

The current process for approving crypto ETFs is time-consuming and uncertain, often extending beyond 240 days with multiple rounds of public comment and staff review. Generic listing standards could reduce this timeline to approximately 60-75 days, facilitating quicker market entry for new products and enhancing overall sector efficiency.

To date, only Bitcoin and Ether ETFs have met regulatory approval. Introducing generic standards could broaden the scope to include altcoins such as Solana (SOL), XRP, and Dogecoin (DOGE), as well as innovative structures like staking-linked ETFs or thematic baskets. Proposals require tokens to have a minimum of six months trading history on Commodity Futures Trading Commission-regulated futures markets, ensuring maturity and liquidity safeguards.

Enhancing Transparency and Investor Protection

While some critics argue that ETFs merely financialize cryptocurrencies, the ETF structure actually provides the transparency, custody safeguards, and surveillance mechanisms regulators have long sought. By wrapping digital assets in regulated ETFs, investors gain access to standardized disclosures, regulated creation and redemption processes, and oversight by established exchanges — features lacking in offshore or unregulated platforms.

The US currently lags behind jurisdictions such as the European Union, Hong Kong, and Singapore, where clearer regulatory frameworks for crypto asset products have been implemented. Adoption of generic listing standards would signal the US’s commitment to leading innovation and integrating digital assets into regulated markets.

Next Steps and Market Implications

The SEC is expected to issue a decision by September 2025. If approved, exchanges could begin listing a new generation of altcoin ETFs before the end of that year, clearing a backlog of nearly 100 applications. This would pave the way for diversified offerings including index funds, thematic baskets, and hybrid ETFs combining crypto with equities or commodities.

Earlier in August 2025, the SEC approved in-kind creation and redemption mechanisms for crypto ETFs, aligning them with commodity fund standards and reducing operational costs. Generic listing standards represent a logical progression, balancing investor protection with operational efficiency.

Ensuring Market Integrity While Embracing Innovation

Regulation aims to provide consistent, transparent rules that protect investors and uphold market integrity rather than judging asset class legitimacy. Delaying crypto’s integration into regulated markets risks pushing investors toward less secure venues with poor custody and oversight.

By contrast, ETFs bring digital assets within the regulatory perimeter, enabling monitoring, disclosure, and supervision akin to traditional financial products. The SEC’s move to adopt generic listing standards would not imply endorsement of any specific token but would establish a predictable framework for regulated exchanges and issuers.

Maintaining US Leadership in Capital Markets

The introduction of Rule 6c-11 in 2019 was transformative for the ETF industry, reducing barriers and fostering innovation. A similar framework for crypto ETFs offers the same opportunity to accelerate market development. As digital assets continue to grow in importance, the SEC’s decision will influence whether investors access these products through transparent, regulated US markets or through opaque international platforms.

According to Margaret Rosenfeld, chief legal officer at Everstake, the time has come to fully integrate crypto ETFs into the mainstream ETF ecosystem, ensuring the US remains at the forefront of financial innovation.

Disclaimer: This article reflects the author’s opinions and is for informational purposes only. It does not constitute legal or investment advice.