The U.S. Securities and Exchange Commission (SEC) approved groundbreaking generic listing standards on Wednesday that will allow exchanges to list exchange-traded products (ETPs) holding spot cryptocurrencies without requiring individual case-by-case approval from the agency. This decision eliminates the lengthy 19(b) rule filing process that could take up to 270 days, instead enabling exchanges meeting the new standards to bring commodity-based trust shares directly to market.
Simultaneously, the SEC approved the Grayscale Digital Large Cap Fund, which tracks the CoinDesk 5 Index comprising Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). The regulator also approved options tied to the Cboe Bitcoin U.S. ETF Index and its mini version, expanding crypto-linked derivatives on regulated U.S. markets.
SEC Chairman Paul Atkins stated: "By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets." The proposals came from Nasdaq, CBOE, and NYSE Arca, which ETF issuers have been using to submit their applications.
Industry experts immediately recognized the significance. Bloomberg Intelligence ETF research analyst James Seyffart commented: "This is the crypto ETP framework we've been waiting for. Get ready for a wave of spot crypto ETP launches in coming weeks and months." Kristin Smith, President of Solana Policy Institute, added that the move represents "a net-positive for U.S. investors, markets, and digital asset innovation."