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- The SEC approved new rules that let exchanges list cryptocurrency ETFs without lengthy regulatory reviews.
- This eliminates the previous 240-day approval process.
- The decision also approved Grayscale’s Digital Large Cap Fund and options trading for Bitcoin ETFs.
The Securities and Exchange Commission gave the green light to new regulations on Wednesday that will vastly streamline the entry of cryptocurrency exchange-traded funds into the U.S. markets. The ruling removes the time-consuming regulatory reviews for spot commodity ETPs such as digital assets.
The new structure will allow cryptocurrency ETFs to be listed on an exchange without going through individual SEC approval. This replaces the complex 19(b) rule filing procedure, which took a maximum of 240 days to be reviewed. The issuers of ETFs are now allowed to collaborate directly with large exchanges such as Nasdaq, the NYSE, and CBOE to introduce products.
The streamlined approach will involve ETF proposals that are of generic listing requirements. Exchanges can continue with the listings once these criteria have been met. This eliminates major regulatory bottlenecks that have slowed the launch of crypto ETFs.
The objectives of the rule change, according to SEC Chairman Paul Atkins, are to create fewer regulatory hurdles to digital asset product entry in regulated markets. According to him, the move will guarantee that the U.S. capital markets are leading with global digital asset innovations.
The commission also approved Grayscale’s Digital Large Cap Fund that tracks the CoinDesk 5 Index. Bitcoin, Ethereum, XRP, Solana and Cardano are available in this fund. The SEC also approved options trading for the Cboe Bitcoin U.S. ETF index and its mini version.
— Grayscale (@Grayscale) September 18, 2025
Altcoin ETFs Expected
The new rules, according to industry experts, will result in massive expansion in the cryptocurrency ETF offerings. Several altcoin ETFs have been waiting for regulatory clarity before entering the market.
According to James Seyffart, an ETF research analyst at Bloomberg Intelligence, the development of the crypto ETF structure was the much-awaited one. He anticipates a large number of spot crypto ETPs over the next few weeks and months.
WOW. The SEC has approved Generic Listing Standards for "Commodity Based Trust Shares" aka includes crypto ETPs. This is the crypto ETP framework we've been waiting for. Get ready for a wave of spot crypto ETP launches in coming weeks and months. pic.twitter.com/xDKCuj41mc
— James Seyffart (@JSeyff) September 17, 2025
The generic listing rules eliminate ambiguity that stopped the ETF sponsors from creating cryptocurrency products. Exchanges have the ability now to compare proposals on objective, pre-defined terms and conditions instead of putting every application at the mercy of a comprehensive regulatory process.
This regulatory change will make the United States more competitive globally. Europe and Canada markets have offered different crypto ETF products, while U.S. investors had fewer options.
Market Impact and Industry Response
The decision of the SEC was seen as an important move towards mainstream adoption of cryptocurrency by the financial industry leaders. The Solana Policy Institute recognised that the commission had developed clear regulations.
President of the Solana Policy Institute Kristin Smith described the announcement as an encouraging development. She emphasised the SEC’s commitment to the rule of law and providing clear business guidelines.
As highlighted in our previous article, this week, REX-Osprey will launch the first XRP and Dogecoin ETFs in the United States, and these products will trade under tickers XRPR and DOJE.
