The Securities and Exchange Commission (SEC) has released new exchange filings that reveal “listing standards” for Exchange-traded products (ETPs). The new rules allow the tokens traded on Coinbase’s derivatives market for more than six months to qualify.
SEC Releases Listing Standards
The new SEC listing has a large number of new crypto ETPs, meaning they will not require separate SEC clearance for each product if they meet the outlined requirements. This initiative intends to create a single set of rules for listing crypto funds. This includes assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP, among many others.
The Solana ETPs, which are expected to be approved by October 10, are required to be commented on with suggestions to enhance the regulatory system. The Comment Period will probably finish 21 days after the rule is published in the Federal Register.
Crypto experts are expecting ETP launches for assets like Solana and XRP by Q4 2025, with multiple other altcoins approved by September or October.
Why did the SEC Release the Listing Standard?
The Chicago Board Options Exchange (CBOE) requested that the SEC change a rule that would have a major impact on crypto ETFs. This is to allow crypto listings with a single set of rules to provide regulatory clarity, which will potentially assist in increasing participation in the crypto ETP sector.
NYSE Arca has also filed a similar document, which shows that the whole industry is working to make regulatory processes easier.
The current process requires the exchanges to file a 19-b4 form to apply for each new crypto ETF. This is typically a long and complicated review process by the SEC. So, the agency took some bold steps to integrate crypto into the traditional finance system while allowing an increased adoption rate.
The SEC also approved in-kind creation and redemption for crypto ETPs, aligning them with standard commodity ETP practices. It will enable smooth operation, reduce transaction costs, and allow direct exchanges of crypto for ETP shares.
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FAQs
The SEC established uniform rules allowing crypto ETP listings without individual approvals if tokens traded on Coinbase Derivatives for 6+ months, streamlining Bitcoin, Ethereum & altcoin fund launches.
Responding to CBOE/NYSE Arca requests, the SEC aims to simplify regulatory processes, replace lengthy 19-b4 filings, and boost institutional crypto participation.
Analysts project Solana/XRP ETPs by Q4 2025, with broader altcoin approvals possible by September-October under the streamlined standards.
