SEC Approves New Listing Standards for Crypto ETFs
The U.S. Securities and Exchange Commission has approved a change to the way companies can list and trade shares of exchange-traded funds (ETFs), aiming to simplify the process for new products in the future.
You’re reading State of Crypto, a CoinDesk newsletter exploring the intersection of cryptocurrency and government. Click here to sign up for future editions.
Streamlining the Listing Process
A majority of the commissioners at the U.S. Securities and Exchange Commission voted to simplify the process for companies to list and trade shares of spot crypto exchange-traded funds (ETFs) alongside other types of ETFs, by introducing a generic listing standard.
For over ten years, the procedure for attempting to list a spot crypto exchange-traded fund was a lengthy 270-day process that typically ended in the rejection of the ETF application. Last year, under the leadership of former SEC Chair Gary Gensler, the regulator approved the first spot crypto ETFs for Bitcoin and Ether. Since then, several applications for additional assets have emerged.
The concept of the SEC establishing generic listing standards has been on the table for several months, particularly since the regulator paused the launch of Grayscale’s Digital Large Cap Fund earlier this year.
In July, the SEC approved GDLC for uplisting as an ETF but quickly paused the process. A source familiar with the situation indicated that this pause was likely intended to allow the SEC ample time to formulate those generic listing standards.
Just this past Wednesday, the SEC approved these standards, enabling companies to bypass the Exchange Act process if their proposed products comply with the new guidelines.
SEC Chairman Paul Atkins remarked, “By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets. This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets.”
More Read
A number of spot crypto ETF applications have been awaiting a final decision from the regulator, indicating that several new products may launch in the upcoming months.
Crypto ETF ‘Floodgates’ Open With SEC Listing Standards, But Price Impact May Be Uneven
- 14:00 UTC (10:00 a.m. ET): An evidentiary hearing will take place in the Department of Justice’s case against former crypto lobbyist and onetime Congressional candidate Michelle Bond.
