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SEC Approves New Crypto ETF Rule, Paving Way for Faster Listings

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The post SEC Approves New Crypto ETF Rule, Paving Way for Faster Listings appeared first on Coinpedia Fintech News

The U.S. Securities and Exchange Commission (SEC) has approved generic listing standards for commodity-based exchange-traded products (ETPs), including those tied to cryptocurrencies.

Until now, every new crypto ETF required separate approval, a process that could drag on for 240 days or more. Under the new rules, if a fund meets certain requirements, exchanges such as the NYSE, Nasdaq, or Cboe can list it directly without waiting months.

This approval also cleared the way for the Grayscale Digital Large Cap Fund to list.

Grayscale’s Role in Paving the Way

In an X thread, ETF analyst Nate Geraci called the decision a milestone for crypto, praising the SEC for moving quickly on what he dubbed the new “Crypto ETF Rule.”

“Just two years ago, the SEC was still fighting Grayscale in court over a spot Bitcoin ETF,” Geraci noted. “Now, we have a framework that could unlock dozens of new crypto products.”

Geraci credited Grayscale for its long legal battle with the SEC, saying it laid the groundwork for today’s approval. The new rule is built on the same principle that powered Grayscale’s lawsuit, whether an asset has futures contracts trading on regulated markets.

From Enforcement to Common Sense

For years, the cryptocurrency industry has criticized the SEC for what many have called “regulation by enforcement.” Innovators said the approach was overly restrictive and lacked practical reasoning.

According to Geraci, the new framework marks a shift toward balance:

“This is the SEC moving from regulation by enforcement to regulation by common sense.”

What the New Standards Require

To qualify for listing under the new standards, a crypto asset must meet at least one of the following conditions:

  • Be traded on a market that is part of the Intermarket Surveillance Group
  • Have a futures contract listed for at least six months on a CFTC-regulated market
  • Be included in an ETF with at least 40% exposure already trading on a national exchange.

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A Flood of New Crypto ETFs Coming?

Geraci believes the framework could unleash a wave of new ETF filings and launches. While not everyone may welcome this level of mainstream exposure, ETFs offer a simple way for both retail and institutional investors to access crypto.

ETFs are already booming, and active ETFs now make up 40% of all ETF inflows in 2025, with assets surpassing $1 trillion. This shows a strong investor preference for active strategies that can adjust to market volatility.

If more crypto ETFs launch, experts expect:

  • Bigger capital flows into altcoins
  • Improved liquidity
  • Increased volatility as markets adjust

A Major Win for Crypto

For now, the decision is being hailed as a regulatory breakthrough that could help push crypto further into the financial mainstream. The approval signals that crypto markets are entering a more mature and accessible phase a sharp contrast to the SEC’s stance just a few years ago.

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FAQs

Why is this a major shift for the SEC and crypto?

For years, the SEC used a “regulation by enforcement” approach, leading to many lawsuits. This new framework moves toward “regulation by common sense,” providing clear rules for innovators.

How will this new rule affect the crypto market?

This change could lead to a flood of new crypto ETF launches, which is expected to bring more capital into altcoins, improve liquidity, and potentially increase market volatility.

What are the requirements for a crypto ETF to be listed?

To qualify, a crypto asset must be traded on a market with an Intermarket Surveillance Group, have a CFTC-regulated futures contract, or be in a currently trading ETF.