SEC Moves to Streamline Spot Crypto ETF Approvals
The SEC established generic listing standards under Rule 6c-11 to hasten the approvals process for spot crypto ETFs, a first of its kind. Exchanges can now list products that meet these broad standards instead of reviewing ETF applications one by one, which has taken months previously.
SEC Chair Paul Atkins stated that the approval of these standards will ensure that capital markets remain the best markets in the world for cutting-edge digital asset innovation.
The new framework will likely affect spot ETFs for XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC), among other major cryptocurrencies awaiting approval.
How the New Rules Work
Under the SEC’s new guidance, a crypto spot ETF can qualify to be listed if it:
- Has surveillance access to a traded commodity that is monitored within the Intermarket Surveillance Group or
- Has an agreement where a futures contract shares information to assist another person or business in the future.
- Has an ETF listed on a national U.S. securities exchange with at least 40% exposure.
Exchanges that want to list items not covered by these standards will still have to file a special rule submission with the SEC.
Also Read : BlackRock Eyes Tokenized ETFs After Bitcoin Fund Success
Industry Reactions
Many analysts and industry experts called the move a sea change for US crypto investment products. Bloomberg ETF analyst James Seyffart described it as:
“The crypto ETP framework we’ve been waiting for,” predicting a flurry of new crypto ETFs and other exchange-traded products in months to come.
Although optimistic, SEC Commissioner Caroline Crenshaw warned that the new rules could let a product onto the market without being fully screened for investor protection.
With a formal ruling on crypto ETFs, investors’ decisions mark a major milestone for the digital asset arena. This move potentially signals a more structured regulatory process for crypto ETFs.
