Opinion by: Margaret Rosenfeld, chief authorized officer of Everstake
For years, the approval of crypto exchange-traded funds (ETFs) has been some of the contested battles in monetary regulation. The primary functions for a Bitcoin (BTC) ETF date again greater than a decade. Solely in early 2024, after repeated denials and a courtroom battle that pressured the US Securities and Trade Fee to rethink, did spot Bitcoin ETFs lastly achieve SEC approval in america.
The lengthy highway to that time underscored the regulatory warning, political scrutiny and structural complexity surrounding digital asset markets.
Now, only a yr later, the dialog has shifted dramatically.
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 record with out requiring bespoke SEC approval underneath SEC Rule 19b-4.
If adopted by the SEC, this modification would align crypto ETFs with conventional ETFs, which gained their very own generic framework by way of Rule 6c-11 in 2019. In different phrases, crypto ETFs could lastly be transferring from distinctive therapy 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 evaluation and sometimes extended uncertainty. Generic itemizing requirements would minimize timelines to 60-75 days, making bringing new merchandise to market far simpler. Pace and effectivity would profit each facet of the sector.
To this point, 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 progressive 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 be certain that solely sufficiently mature tokens qualify, whereas nonetheless increasing investor selection.
Critics generally body ETFs as a approach of financializing crypto. The fact, nevertheless, 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 could be a safer, extra clear approach for traders to realize publicity than offshore exchanges or unregulated platforms.
The US has fallen behind in crypto regulatory readability. The EU’s Markets in Crypto-Belongings 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 is going to ship a robust message that the US intends to steer, not lag, in integrating digital belongings into regulated markets.
What comes subsequent
The SEC might difficulty a choice in September 2025. If authorised, exchanges could possibly record the primary wave of altcoin ETFs earlier than the top of the yr. 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 ETFs
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 therapy as conventional belongings. The aim of regulation will not be, nevertheless, to determine which asset courses are worthy. It’s to offer clear, constant guidelines that shield traders and guarantee market integrity.
Delaying integration solely perpetuates danger. With out accessible, regulated merchandise, traders chase publicity in much less secure venues, together with exchanges with poor custody safeguards, offshore platforms past US oversight or illiquid non-public placements. In contrast, ETFs convey crypto into the regulatory perimeter, the place it may be monitored, disclosed and supervised like some other monetary product.
Maintain the US on the forefront of market innovation
Adopting Rule 6c-11 in 2019 remodeled the ETF business, unlocking innovation and reducing boundaries for issuers. The identical alternative now exists for crypto. The SEC wouldn’t endorse any specific token or venture by approving generic itemizing requirements. It might merely present a predictable framework that permits regulated exchanges and issuers to function clearly.
Crypto will not be going away. The query is whether or not traders will entry it by way of clear, regulated merchandise in US markets or by way of 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 convey crypto ETFs totally into the ETF age.
Opinion by: Margaret Rosenfeld, chief authorized officer of Everstake.
This text is for common info functions and isn’t meant to be and shouldn’t be taken as authorized or funding recommendation. The views, ideas, and opinions expressed listed here are the writer’s alone and don’t essentially mirror or characterize the views and opinions of Cointelegraph.
