SEC Approval Of Listing Standards Can Mainstream Crypto ETFs

Opinion by: Margaret Rosenfeld, chief legal officer of Everstake

For years, the approval of crypto exchange-traded funds (ETFs) has been one of the most contested battles in financial regulation. The first applications for a Bitcoin (BTC) ETF date back more than a decade. Only in early 2024, after repeated denials and a court battle that forced the US Securities and Exchange Commission to reconsider, did spot Bitcoin ETFs finally gain SEC approval in the United States.

The long road to that point underscored the regulatory caution, political scrutiny and structural complexity surrounding digital asset markets.

Now, just a year later, the conversation has shifted dramatically. 

The SEC is considering a set of proposals from Nasdaq, NYSE Arca and Cboe BZX to adopt generic listing standards for crypto and commodity-based ETFs. These rules would allow qualifying funds to list without requiring bespoke SEC approval under SEC Rule 19b-4.

If adopted by the SEC, this change would align crypto ETFs with traditional ETFs, which gained their own generic framework through Rule 6c-11 in 2019. In other words, crypto ETFs may finally be moving from exceptional treatment into the mainstream.

Why this matters

The current approval process for crypto ETFs is cumbersome. Each new filing can take 240 days or longer, involving rounds of public comment, staff review and often prolonged uncertainty. Generic listing standards would cut timelines to 60-75 days, making bringing new products to market far easier. Speed and efficiency would benefit every aspect of the sector.

Up to now, only Bitcoin and Ether (ETH) ETFs have cleared the regulatory bar. Generic standards could open the door to ETFs tied to Solana (SOL), XRP (XRP), Dogecoin (DOGE) or even more innovative structures like staking-linked products or thematic baskets. By creating clear eligibility criteria, like requiring six months of trading history on Commodity Futures Trading Commission-regulated futures markets, these proposals ensure that only sufficiently mature tokens qualify, while still expanding investor choice.

Critics sometimes frame ETFs as a way of financializing crypto. The reality, however, is that ETFs offer precisely the kind of transparency, custody safeguards and surveillance mechanisms regulators have long demanded. Wrapping digital assets in an ETF structure means better disclosures, standardized creation and redemption processes, and oversight from regulated exchanges. That is a safer, more transparent way for investors to gain exposure than offshore exchanges or unregulated platforms.

The US has fallen behind in crypto regulatory clarity. The EU’s Markets in Crypto-Assets framework, Hong Kong’s licensing regime and Singapore’s capital markets approach all provide more predictable paths for digital asset products. If the SEC finalizes generic listing standards, it will send a powerful message that the US intends to lead, not lag, in integrating digital assets into regulated markets.

What comes next

The SEC could issue a decision in September 2025. If approved, exchanges may be able to list the first wave of altcoin ETFs before the end of the year. That would clear a backlog of nearly 100 applications and set the stage for innovation, including index funds, thematic baskets and even hybrid ETFs that combine crypto with equities or commodities.

Related: SEC pushes back decisions on Truth Social, Solana, XRP crypto ETFs 

The SEC has already laid the necessary groundwork. In August 2025, it approved in-kind creation and redemption mechanisms for crypto ETFs, aligning them with commodity fund norms and lowering costs. That decision demonstrated an understanding that operational efficiency and investor protection can go hand in hand. Generic listing standards are the logical next step.

It is important to get this right

Skeptics will argue that crypto does not deserve the same treatment as traditional assets. The purpose of regulation is not, however, to decide which asset classes are worthy. It is to provide transparent, consistent rules that protect investors and ensure market integrity.

Delaying integration only perpetuates risk. Without accessible, regulated products, investors chase exposure in less safe venues, including exchanges with poor custody safeguards, offshore platforms beyond US oversight or illiquid private placements. By contrast, ETFs bring crypto into the regulatory perimeter, where it can be monitored, disclosed and supervised like any other financial product.

Keep the US at the forefront of market innovation

Adopting Rule 6c-11 in 2019 transformed the ETF industry, unlocking innovation and lowering barriers for issuers. The same opportunity now exists for crypto. The SEC would not endorse any particular token or project by approving generic listing standards. It would simply provide a predictable framework that allows regulated exchanges and issuers to operate clearly.

Crypto is not going away. The question is whether investors will access it through transparent, regulated products in US markets or through opaque structures overseas. The SEC’s decision on generic listing standards will help determine that answer.

The commission should move forward if the US wants to remain the global hub of innovation in capital markets. The time has come to bring crypto ETFs fully into the ETF age.

Opinion by: Margaret Rosenfeld, chief legal officer of Everstake.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.