SEC Chair Paul Atkins says the new listing standards will reduce barriers to access digital asset products and give investors more choice.
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The US Securities and Exchange Commission has approved standards that could speed up spot crypto ETF approvals, as each application would not need to be assessed individually.
The decision, detailed in SEC on stock exchanges like the Nasdaq, NYSE Arca, and Cboe BZX, on Wednesday, would streamlines the process under Rule 6c-11, significantly reducing approval timelines, which have taken several months in the past.
“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,” SEC Chair Paul Atkins in a separate statement.
”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.”
It comes as spot ETF applications for the likes of Solana (), XRP (), Litecoin () and Dogecoin () await official approval.
The SEC was facing deadlines from October onwards to decide on those cases, in addition to a handful of others, including Avalanche, (), Chainlink (), Polkadot () and BNB ().
The development was viewed as bullish by many industry pundits, including Bloomberg ETF analyst James Seyffart, who “This is the crypto ETP framework we’ve been waiting for.”
He expects a wave of crypto investment products to launch in the US in the coming weeks and months.
SEC sets out clear standards
To be eligible for listing, a crypto spot ETF must hold a commodity that either trades on a market that is part of the Intermarket Surveillance Group with surveillance access, or underlies a futures contract listed on a designated contract market for at least six months with a surveillance-sharing agreement in place.
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Alternatively, it may be eligible if it is already tracked by an ETF with at least 40% exposure listed on a national securities exchange, the securities regulator said.
An exchange will need to submit a rule filing with the SEC when seeking to list and trade crypto exchange-traded products that do not meet the approved generic listing standards.
SEC’s Crenshaw flags investor risk concerns
SEC Commissioner Caroline Crenshaw concern over the new listing standards, warning that they could lead to a market flooded with products that haven’t been fully vetted for investor protection.
“The Commission is passing the buck on reviewing these proposals and making the required investor protection findings, in favor of fast tracking these new and arguably unproven products to market.”
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