The U.S. Securities and Exchange Commission (SEC) has approved a new set of generic listing standards that will allow national securities exchanges to list commodity-based exchange-traded products, including spot cryptocurrency ETFs, without requiring case-by-case approval. The move simplifies the regulatory pathway for such products and introduces formal criteria for eligibility. The final rule, approved on September 17, permits exchanges such as NYSE Arca, Nasdaq, and Cboe BZX to list and trade Commodity-Based Trust Shares without submitting individual filings under Section 19(b) of the Securities Exchange Act.
The changes apply to products backed by spot commodities, including digital assets like Bitcoin and Ethereum. Under the new framework, a commodity or crypto-linked ETP may qualify for automatic listing if it meets one of three criteria. The product’s underlying asset must either trade on a market that is a member of the Intermarket Surveillance Group or under a similar surveillance-sharing arrangement, be the subject of a regulated futures contract that has traded for at least six months, or already comprise a significant portion of an existing ETP, defined as 40 percent or more.
The SEC also approved the listing of the Grayscale Digital Large Cap Fund under the updated standards. The fund, which tracks a basket of leading digital assets, becomes the first crypto-based ETP to benefit from the streamlined rules. Additionally, the SEC approved p.m.-settled options on the Cboe Bitcoin ETF Index and its mini version, expanding the scope of tradable instruments linked to digital assets. SEC Commissioner Hester Peirce supported the changes, stating that the rule creates a predictable and transparent structure for listing commodity-based products.
Exchanges gain clarity on listing crypto ETPs under SEC rules
In her public statement, Peirce said the decision aligns the regulatory process for digital asset ETPs with the procedures already established for other asset classes. In contrast, Commissioner Caroline Crenshaw dissented. She argued that removing the requirement for individualized Commission review may reduce investor protections by limiting the SEC’s oversight of disclosures and market conditions related to specific products. Crenshaw stated that while the rule does not eliminate the SEC’s regulatory role, it does alter the level of scrutiny applied during the listing process.
According to the SEC’s release, the changes take effect immediately. Exchanges can now list qualifying ETPs under the generic listing standards without additional approval, provided the products comply with the defined criteria. Non-qualifying products must continue to seek approval through the traditional rule-change process. Major financial media outlets confirmed the scope and impact of the ruling, noting that the regulatory change reduces the timeline for product approval.
SEC introduces defined standards for crypto ETF listing
Previously, ETPs could face delays of up to 240 days while awaiting SEC review. Under the new process, products meeting the generic standards can be listed in as few as 75 days, according to reports. Crypto media outlets reported that the new listing standards may enable exchanges to list ETPs linked to a broader range of cryptocurrencies beyond Bitcoin and Ethereum. Assets such as Solana, XRP, Cardano, and Chainlink may now meet the eligibility requirements through existing futures or inclusion in large-cap funds.
The SEC’s rule change introduces defined, measurable standards for listing spot commodity and crypto-based ETPs, providing a uniform structure for exchanges and issuers. The decision is consistent with the Commission’s broader regulatory framework for oversight of digital assets and commodity markets, aiming to improve transparency, streamline compliance, and ensure consistency across all approved exchange-traded products under federal securities law. – By CryptoWire News Desk.