SEC approves new exchange listing standards fast-tracking crypto ETF listings
The U.S. Securities and Exchange Commission approved on an "accelerated basis" listing standards for crypto exchange-traded funds, quickly setting the stage for those products to be ready for public trading.In a filing made on Wednesday, the SEC said it found "good cause" to approve the standards early."The Commission finds good cause to approve the Proposals prior to the 30th day after the date of publication of notice of the Exchanges’ amended filings in the Federal Register," the agency said. "The amended filings clarify the definitions set forth in, and the requirements of, the proposed generic listing standards."Exchanges Nasdaq, NYSE Arca, Inc., and Cboe BZX Exchange had previously asked the agency to change a rule to "permit the generic listing and trading of Commodity-Based Trust Shares that meet the requirements set forth in proposed Rule 14.11(e)(4)." That rule governs the trading and listing of commodity-based trust shares and has specific requirements to have certain shares listed on the exchange."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," said SEC Chairman Paul Atkins in a statement.The SEC's approval is a significant turn of events for dozens of crypto ETFs awaiting the agency's sign-off and would accelerate that process. Firms have been looking to list funds tracking SOL to XRP to DOGE in the wake of a friendlier regulatory environment at the SEC.Under current rules, exchanges must file a 19b-4 form for crypto ETFs, triggering a review period of up to 240 days. The new listing standards will reduce that timeline to as little as 75 days and allow the listing and trading of crypto exchange-traded products that meet those standards without the 19b-4 form requirement.In a note on Tuesday, Matt Hougan, chief investment officer at crypto asset manager Bitwise said that the listing standards could "blow the market wide open."The SEC also said on Wednesday that it approved the listing and trading for the Grayscale Digital Large Cap Fund. The agency had previously put a pause on Grayscale's move to convert the fund. That ETF trades over the counter for accredited investors and is composed primarily of bitcoin at almost 80% and Ethereum at about 11%. Solana, Cardano, and XRP are also represented with single-digit percentages, according to its website.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.