Main Points :
- The U.S. Securities and Exchange Commission (SEC) is preparing generic listing standards for crypto Exchange‐Traded Products (ETPs), potentially effective as early as October 2025, which would streamline approvals.
- Under the new framework, approval could drop from ~240 days to ~75 days for qualifying crypto assets.
- Criteria likely include: the crypto having a regulated futures market, trading on a regulated futures exchange, and/or surveillance agreements, etc.
- While many new crypto ETPs could launch, inflows aren’t guaranteed; fundamentals of the underlying asset (liquidity, demand, staking or utility, etc.) will matter.
- Other recent regulatory changes: in‐kind creation/redemption allowed; multiple pending ETF applications; SEC’s shifts under new leadership; exchanges proposing listing rule changes under Rule 19b-4 and related rules.
Introduction
For investors or blockchain practitioners scanning for the next major opportunity, the U.S. regulatory environment is at a possible inflection point. Bitwise’s Matt Hougan has recently emphasized that the SEC’s move toward “generic listing standards” for crypto ETPs might permit many new products to launch with much less delay. This change could usher in expanded access to spot‐crypto ETFs, altcoin exposure, and institutional flows—but it won’t automatically guarantee that every product will succeed.
1. The Push for Generic Listing Standards
The current model for crypto ETP or crypto ETF approvals in the U.S. is case‐by‐case. Issuers must file detailed applications, wait for SEC review, respond to comments; this process can take up to 240 days or more.
Under the proposed generic listing standard, if certain objective criteria are met (futures trading history, market surveillance, etc.), an ETP could be approved in approximately 75 days or less.
This proposal has been filed by major exchanges (Nasdaq, NYSE Arca, Cboe) via rule filings such as 19b-4 amendments, and following exchanges’ proposed rule changes for Commodity Based Trust Shares, etc.
2. Expected Eligibility Criteria & Which Tokens May Qualify
Based on public filings and analysis:
- Tokens must underlie a futures contract traded on a regulated U.S. futures exchange for at least six months (or have equivalently strong derivatives market)
- They must have surveillance sharing agreements, or trade on markets that are part of intermarket surveillance groups or equivalent arrangements.
- Existing exposure via futures or ETFs might count; also requirement that the product provides sufficient economic exposure (some filings propose thresholds like ≥40% NAV exposure) and meets continuing listing standards.
Using these criteria, tokens such as SOL (Solana), XRP, AVAX, DOGE, LTC, LINK, DOT, SHIB, XLM, HBAR are frequently cited as likely to qualify or soon qualify.
3. Structural and Regulatory Changes Accompanying the Shift
Besides the generic listing standards, several other changes are reinforcing the framework:
- The SEC has permitted in-kind creations and redemptions for crypto ETPs. Previously many of the approved spot ETPs required cash redemptions. This change aligns crypto ETPs more closely with traditional commodity ETFs and reduces friction/inefficiency.
- Exchanges submitted proposed rule changes under Rule 19b-4 to allow for generic listing of Commodity‐Based Trust Shares, expanding what ETPs can hold (futures, securities tied to commodities, etc.).
- Many ETF/ETP applications still pending; delays remain especially for altcoins, staking mechanics, custody risk, etc. SEC under new leadership (Chair Paul Atkins) is showing a regulatory tilt more favorable to clarity, predictability, and less aggressive enforcement of technical infractions.
4. Risks, Limitations, and Market Dynamics
Although regulatory easing is a big step, several caveats are in order:
- A product being approved fast or generically does not ensure capital inflows. Investor interest depends on fundamentals: token’s utility, demand (staking, DeFi use, network growth), liquidity, institutional credibility. For example, altcoins with weak fundamentals may not attract large funds even after approval.
- Market watchers also warn that regulatory clarity (or the lack thereof) around how assets are classified (security vs commodity), how staking/custody risks are handled, how surveillance is enforced, still matters a lot. These unresolved issues could slow or complicate launches.
- Some pending decisions are still being pushed back (e.g. Solana ETF and others) into late 2025 or early 2026.
Recent Developments & Trends
To bring in what’s new since the original memo / article:
- Several sources confirm that the generic listing standards proposals could be finalized by late September 2025, with implementation as soon as October.
- There are over 90+ pending crypto ETF/ETP applications (various issuers) targeting multiple tokens beyond Bitcoin & Ethereum. The backlog is pushing regulatory pressure to streamline the process.
- The SEC has recently allowed in-kind creation/redemption, which is a meaningful technical market infrastructure move.
- Exchange rule filings (e.g. from Nasdaq, Cboe, NYSE Arca) are aligning to set up generic standards under existing rules such as Rule 5711 and Rule 6c-11, modifying Commodity‐Based Trust Shares, etc.
- New leadership under Chair Paul Atkins is adopting a more market-friendly, clarity-seeking approach, including shifting away from surprise enforcement and technical violation crackdowns toward more predictable rulemaking.
Conclusion
The SEC’s move toward generic listing standards for crypto ETPs represents a potentially transformative shift. For the first time, legitimate altcoins may have a smoother, faster path to the regulated investment product market. That means greater exposure for large‐cap tokens beyond just Bitcoin & Ethereum—SOL, XRP, AVAX, DOGE, among others—could see product launches and perhaps meaningful institutional flows.
However, this isn’t a guarantee of success. Products still depend on underlying fundamentals: liquidity, strong network usage or demand, clarity on staking or custody, regulatory classification, and investor interest. For practitioners, protocol teams, or investors, now is the time to assess whether a token meets the emerging criteria, prepare for compliance (e.g. with surveillance regimes, derivatives markets), and watch for filings and approvals.
If these standards are implemented in October, the months after should be very active: a wave of new ETPs, renewed interest in altcoins, and potentially a market rally—if macro conditions like interest rates, Fed policy, and token utility also align.
