tl;dr
The U.S. Securities and Exchange Commission (SEC) approved new generic listing standards for commodity-based trust shares on major exchanges, aiming to streamline approval processes for cryptocurrency exchange-traded products (ETPs). The move, effective September 17, could accelerate ETP launches bu...
**SEC Unveils New Standards for Crypto ETPs: What It Means for Investors**
The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward reshaping the landscape of cryptocurrency investments. On September 17, the regulator approved new *generic listing standards* for commodity-based trust shares on major exchanges, including Nasdaq, Cboe, and the New York Stock Exchange. The move, reported by Fox Business’s Eleanor Terret, aims to streamline the approval process for exchange-traded products (ETPs) tied to digital assets—potentially paving the way for a broader array of crypto investment options.
But don’t expect a full-blown “floodgate” just yet. While the standards are designed to accelerate the launch of new ETPs, they don’t apply to every type of crypto product. Threshold requirements still act as gatekeepers, meaning not all digital asset-based ETPs will qualify immediately. Tushar Jain of Multicoin Capital emphasized this nuance, noting that the SEC’s framework is a starting point, not a final answer. “The regulator will likely refine these standards as the market evolves,” he said.
The approval follows years of regulatory back-and-forth. Exchanges and crypto firms have long lobbied for clearer guidelines, as past applications for crypto-based products faced prolonged reviews and rejections. The new process, however, promises to cut delays. By adopting the generic standards, the SEC aims to shorten the time it takes to bring ETPs to market—a move that could alleviate pressure on pending altcoin ETF applications. Many of these proposals, including several Bitcoin and Ethereum-based funds, are set to hit final deadlines in October.
Still, experts caution against overestimating the impact. While the standards could unlock more crypto ETPs, they’re not a silver bullet. The SEC’s cautious approach remains evident: it’s signaling that it may revisit and adjust the rules as the digital asset market matures. For now, the focus is on creating a framework that balances innovation with investor protection.
Investors and industry observers are watching closely. If the SEC continues to ease restrictions, the path could open for a wave of new products. But for now, the crypto world remains in a holding pattern—waiting to see if these standards will truly transform the market or just mark another step in an ongoing dance between regulators and innovators.
What do you think? Will these new rules spark a surge in crypto ETPs, or will the SEC’s cautious stance keep the floodgates firmly shut? The answer may depend on how the market evolves—and how the SEC chooses to respond.