SEC Adopts Generic Listing Standards to Accelerate Spot Crypto ETF Approvals

The SEC has approved a key policy change that could alter the way cryptocurrency exchange-traded products (ETPs) are introduced to the market.

The regulator has adopted generic listing standards, which allow stock exchanges to expedite applications for spot crypto ETFs. Consequently, individual case-by-case reviews are no longer necessary.

Major exchanges such as Nasdaq, NYSE Arca, and Cboe BZX highlighted the update in their filings. Covered under Rule 6c-11, the rule aims to streamline approvals and shorten the historically lengthy timelines, which previously extended for several months.

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SEC Chair Paul Atkins welcomed the move and highlighted its importance. He described it as a vital step for preserving the United States’ competitive edge in digital finance. According to him, the streamlined system ensures that American capital markets remain a trusted place for both innovation and investment. 

“At its core, this update is about giving investors more choice while lowering barriers for new financial products,” Atkins said.

Pending Decisions on Multiple Crypto Assets

The news emerges as multiple spot crypto ETF proposals are under review by regulators. Among them are ETFs linked to widely known digital currencies, including Solana, XRP, Litecoin, and Dogecoin. 

Other applications associated with Avalanche, Chainlink, Polkadot, and Binance Coin (BNB) are also awaiting approval. The SEC has looming decision deadlines for these filings beginning in October, which adds urgency to the process.

Industry analysts believe the updated framework could lead to a significant increase in ETF launches over the coming months.

According to Bloomberg ETF analyst James Seyffart, the approval sets up a framework for crypto ETPs that investors have been anticipating. Writing on X, he suggested that it may serve as a bullish catalyst for the sector. Additionally, it could create long-awaited diversification opportunities for investors.

WOW. The SEC has approved Generic Listing Standards for "Commodity Based Trust Shares" aka includes crypto ETPs. This is the crypto ETP framework we've been waiting for. Get ready for a wave of spot crypto ETP launches in coming weeks and months. pic.twitter.com/xDKCuj41mc

— James Seyffart (@JSeyff) September 17, 2025

Eligibility Criteria for New Products

While the process is faster, the SEC has established specific criteria that spot crypto ETFs must meet to be approved.

One option requires the fund to hold a commodity that either trades on a market within the Intermarket Surveillance Group or is linked to a futures contract. If the latter applies, the futures contract must have been actively listed on a regulated exchange for at least six months. Moreover, it must be subject to a surveillance-sharing agreement.

Alternatively, an ETF can qualify if its underlying assets are already represented by an exchange-traded product listed on a national securities exchange. In such cases, at least 40% of the fund’s assets must be invested in those tracked holdings.

However, the SEC made clear that products falling outside these “generic” categories will still require exchanges to submit a formal rule filing for consideration.

Divided Opinions Within the SEC

Despite strong support from some corners, the new framework has also raised concerns within the Commission. SEC Commissioner Caroline Crenshaw voiced dissent, warning that faster approvals could compromise investor protection.

She argued that by shifting to a broad standard, the SEC risks allowing untested products into the market without proper vetting. 

“The Commission is essentially avoiding its responsibility to review these proposals and ensure necessary investor protections,” Crenshaw remarked. She cautioned that such inaction might result in markets being flooded with ETFs that are “arguably unproven.”