Opinion by: Margaret Rosenfeld, chief authorized officer of Everstake
For years, the approval of crypto exchange-traded funds (ETFs) has been one of the vital contested battles in monetary regulation. The primary purposes for a Bitcoin (BTC) ETF date again greater than a decade. Solely in early 2024, after repeated denials and a court docket battle that pressured the US Securities and Trade Fee to rethink, did spot Bitcoin ETFs lastly achieve SEC approval in america.
The lengthy street to that time underscored the regulatory warning, political scrutiny and structural complexity surrounding digital asset markets.
Now, only a 12 months later, the dialog has shifted dramatically.Â
The SEC is contemplating a set of proposals from Nasdaq, NYSE Arca and Cboe BZX to undertake generic itemizing requirements for crypto and commodity-based ETFs. These guidelines would enable qualifying funds to listing with out requiring bespoke SEC approval below SEC Rule 19b-4.
If adopted by the SEC, this alteration would align crypto ETFs with conventional ETFs, which gained their very own generic framework by Rule 6c-11 in 2019. In different phrases, crypto ETFs could lastly be shifting from distinctive remedy into the mainstream.
Why this issues
The present approval course of for crypto ETFs is cumbersome. Every new submitting can take 240 days or longer, involving rounds of public remark, employees overview and infrequently extended uncertainty. Generic itemizing requirements would lower timelines to 60-75 days, making bringing new merchandise to market far simpler. Pace and effectivity would profit each facet of the sector.
Thus far, solely Bitcoin and Ether (ETH) ETFs have cleared the regulatory bar. Generic requirements might open the door to ETFs tied to Solana (SOL), XRP (XRP), Dogecoin (DOGE) or much more modern buildings like staking-linked merchandise or thematic baskets. By creating clear eligibility standards, like requiring six months of buying and selling historical past on Commodity Futures Buying and selling Fee-regulated futures markets, these proposals make sure that solely sufficiently mature tokens qualify, whereas nonetheless increasing investor selection.
Critics typically body ETFs as a manner of financializing crypto. The truth, nonetheless, is that ETFs provide exactly the type of transparency, custody safeguards and surveillance mechanisms regulators have lengthy demanded. Wrapping digital belongings in an ETF construction means higher disclosures, standardized creation and redemption processes, and oversight from regulated exchanges. That may be a safer, extra clear manner for buyers to achieve publicity than offshore exchanges or unregulated platforms.
The US has fallen behind in crypto regulatory readability. The EU’s Markets in Crypto-Property framework, Hong Kong’s licensing regime and Singapore’s capital markets method all present extra predictable paths for digital asset merchandise. If the SEC finalizes generic itemizing requirements, it should ship a robust message that the US intends to guide, not lag, in integrating digital belongings into regulated markets.
What comes subsequent
The SEC might difficulty a call in September 2025. If authorised, exchanges might be able to listing the primary wave of altcoin ETFs earlier than the top of the 12 months. That may clear a backlog of almost 100 applications and set the stage for innovation, together with index funds, thematic baskets and even hybrid ETFs that mix crypto with equities or commodities.
Associated: SEC pushes back decisions on Truth Social, Solana, XRP crypto ETFsÂ
The SEC has already laid the required groundwork. In August 2025, it approved in-kind creation and redemption mechanisms for crypto ETFs, aligning them with commodity fund norms and reducing prices. That call demonstrated an understanding that operational effectivity and investor safety can go hand in hand. Generic itemizing requirements are the logical subsequent step.
You will need to get this proper
Skeptics will argue that crypto doesn’t deserve the identical remedy as conventional belongings. The aim of regulation just isn’t, nonetheless, to resolve which asset courses are worthy. It’s to offer clear, constant guidelines that shield buyers and guarantee market integrity.
Delaying integration solely perpetuates threat. With out accessible, regulated merchandise, buyers chase publicity in much less secure venues, together with exchanges with poor custody safeguards, offshore platforms past US oversight or illiquid non-public placements. Against this, ETFs carry crypto into the regulatory perimeter, the place it may be monitored, disclosed and supervised like another monetary product.
Hold the US on the forefront of market innovation
Adopting Rule 6c-11 in 2019 remodeled the ETF business, unlocking innovation and reducing limitations for issuers. The identical alternative now exists for crypto. The SEC wouldn’t endorse any specific token or challenge by approving generic itemizing requirements. It could merely present a predictable framework that permits regulated exchanges and issuers to function clearly.
Crypto just isn’t going away. The query is whether or not buyers will entry it by clear, regulated merchandise in US markets or by opaque buildings abroad. The SEC’s choice on generic itemizing requirements will assist decide that reply.
The fee ought to transfer ahead if the US desires to stay the worldwide hub of innovation in capital markets. The time has come to carry crypto ETFs totally into the ETF age.
Opinion by: Margaret Rosenfeld, chief authorized officer of Everstake.
This text is for basic data functions and isn’t supposed to be and shouldn’t be taken as authorized or funding recommendation. The views, ideas, and opinions expressed listed below are the writer’s alone and don’t essentially mirror or characterize the views and opinions of Cointelegraph.
