SEC Approves New Standards to Speed Up Spot Crypto ETF Approvals
The U.S. Securities and Exchange Commission (SEC) has approved new rules to speed up approvals for spot crypto exchange-traded funds (ETFs). The change removes the need for the SEC to review each application individually. This process often took several months before.
The update applies to stock exchanges like Nasdaq, NYSE Arca, and Cboe BZX. It streamlines the process under Rule 6c-11. This could lead to many new crypto investment products launching in the U.S.
SEC Chairman Paul S. Atkins said, “This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.”
Bloomberg ETF analyst James Seyffart called the move “the crypto ETP framework we’ve been waiting for.” He expects several spot ETFs to launch in the coming weeks.
New Listing Standards for Spot Crypto ETFs
Under the new rules, a spot crypto ETF must meet at least one of three criteria:
- The asset trades on a market within the Intermarket Surveillance Group, with monitoring access.
- The asset underlies a futures contract listed for at least six months on a designated market with a surveillance-sharing agreement.
- The asset is tracked by an ETF with at least 40% exposure listed on a national securities exchange.
If an ETF does not meet these standards, the exchange must file a separate rule request with the SEC.
The timing is important as the SEC faces deadlines starting in October for applications involving Solana (SOL), XRP, Litecoin (LTC), Dogecoin (DOGE), Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), and BNB.
Concerns About Investor Protection
Not all SEC members support the new rules. Commissioner Caroline Crenshaw warned the change could flood the market with unproven products. She said the Commission is “passing the buck” on investor protection.
