SEC Greenlights Generic Listing for Crypto ETFs: Altcoin ETFs Incoming?
The SEC is poised to permit generic listing standards for crypto ETFs, a move that could significantly broaden the range of available crypto investment products. This shift would allow ETF listings based on commodity-classified cryptoassets without requiring specific, case-by-case approvals.
Why Generic Listing Standards Matter
While the SEC has been tacitly approving new crypto ETFs, the adoption of generic listing standards signals a more definitive acceptance of these products. Exchanges like Nasdaq, CBOE, and NYSE Arca proposed rule changes to accommodate Commodity-Based Trust Shares, which the SEC has now approved.
“[Several leading exchanges] filed with the SEC proposed rule changes to adopt generic listing standards for Commodity-Based Trust Shares. Each of the foregoing proposed rule changes… were subject to notice and comment. This order approves the Proposals on an accelerated basis,” the SEC’s filing claimed.
This decision has the potential to streamline the crypto ETF approval process significantly.
A New Era for Crypto ETFs
These new standards would enable ETF issuers to create compliant crypto ETF proposals that, if meeting all SEC criteria, could trade on the market without direct SEC approval. This removes a critical bottleneck in the ETF creation process.
“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. This approval helps to maximize investor choice and foster innovation by streamlining the listing process,” SEC Chair Paul Atkins claimed in a press release.
The rule change hinges on classifying tokens as commodities rather than securities, with regulators already reclassifying assets like XRP. This could soon lead to ETFs based on XRP, Solana, and other cryptocurrencies, marking a significant expansion of crypto investment options. For developers looking to build secure blockchain applications in this evolving landscape, Codeum offers comprehensive security audits and consulting services to ensure compliance and protection against emerging threats.