SEC Greenlights New Listing Rules to Speed Up Crypto ETF Approvals

Jimmy Aki
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On September 17, the U.S. Securities and Exchange Commission (SEC) approved several funds listing standards designed to expedite the approval process for spot crypto ETFs.

Under the updated framework, major exchanges, including Nasdaq, NYSE Arca, and Cboe BZX, can now reference these standardized guidelines to easily list eligible funds, bypassing the need for lengthy individual reviews that were previously required.

Crypto ETFs Eligibility Tied to Market Trades and Futures Contracts

This change extends the existing Rule 6c-11, originally created to simplify listings for traditional exchange-traded funds, to include crypto ETFs. The move establishes a clearer, more predictable pathway for fund issuers while maintaining regulatory oversight.

The new standards outline specific criteria for crypto ETF eligibility.

To qualify, an ETF must hold a cryptocurrency that trades on a market belonging to the Intermarket Surveillance Group (ISG). Members of the ISG share trading surveillance data, enhancing the SEC’s ability to monitor for market manipulation and fraud.

Alternatively, an ETF may be listed if its underlying asset supports a futures contract that has traded on a designated futures exchange for at least six months and is covered by a surveillance-sharing agreement.

A third pathway permits listing if the asset is already tracked by another ETF listed on a national securities exchange, provided the ETF maintains at least 40% exposure to the cryptocurrency.

If an exchange wants to list a crypto ETF that does not meet these standards, it must file a separate rule request with the SEC.

In other words, the new listing standards create a fast lane, but not all products will qualify for it.

This regulatory shift may have broader implications. Kraken recently met with the SEC’s Crypto Task Force to discuss tokenizing traditional assets, suggesting that similar listing rules could eventually apply to tokenized real-world assets (RWAs) as well.

Will a Wave of Crypto ETF Approvals Follow?

The timing of these new standards has sparked speculation that a wave of crypto ETF approvals could be imminent. A number of applications are currently pending SEC review, including proposals for funds tied to SEI, Polkadot, Solana, XRP, Litecoin, and Dogecoin.

One of the most anticipated is the SEI ETF, proposed by asset manager 21Shares. Filed last month, the application seeks approval to launch a fund that tracks the native token of the Sei Network.

The company has also applied for a Polkadot ETF earlier this year. Beginning in October, the SEC will face a series of decision deadlines for ETFs linked to Avalanche, Chainlink, and BNB, among others.

Bloomberg analyst James Seyffart called the change the framework the industry has been waiting for. He predicted that a wave of new spot crypto ETF launches could follow in the coming weeks and months.

Still, not everyone is convinced. SEC Commissioner Caroline Crenshaw raised concerns that the fast-track process might flood the market with crypto ETFs that lack strong protections for investors.

She warned that speeding up filings should not mean approving untested or high-risk products without enough scrutiny.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.