U.S. SEC Approves Generic Listing Standards For Commodity-Based

U.S. Securities and Exchange Commission (SEC) has approved generic listing standards for commodity-based exchange-traded products (ETPs), including spot crypto ETFs, streamlining the approval process by eliminating the need for individual case-by-case reviews under Section 19(b) of the Securities Exchange Act of 1934.

This allows exchanges like Nasdaq, NYSE Arca, and Cboe BZX to list qualifying ETFs faster, potentially within 60-75 days instead of the previous 240-day process. The decision is seen as a significant step toward mainstreaming crypto ETFs, with industry experts like Bloomberg ETF analyst James Seyffart calling it a “game-changer” that could lead to over 100 new crypto ETFs in the next 12 months.

To be eligible under the new standards, a crypto asset must either trade on a market that is a member of the Intermarket Surveillance Group (ISG) with surveillance-sharing agreements, underlie a futures contract traded for at least six months on a Commodity Futures Trading Commission (CFTC)-regulated exchange, or be tracked by an existing ETF with at least 40% exposure listed on a national securities exchange.

These criteria ensure regulatory oversight and market maturity for eligible tokens. James Seyffart, in a post on X dated September 17, 2025, highlighted that the approval covers “Commodity-Based Trust Shares,” including crypto ETPs, and noted that tokens with futures contracts listed on exchanges like Coinbase (approximately 12-15 coins) are likely eligible.

While Seyffart did not provide an explicit list of tokens the standards suggest that tokens like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Litecoin (LTC), Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Polkadot (DOT), and BNB could qualify, as they are mentioned in pending ETF applications or have established futures markets.

This move aligns crypto ETFs with traditional commodity-based ETFs under Rule 6c-11, reducing barriers and fostering innovation, though some, like SEC Commissioner Caroline Crenshaw, expressed concerns about investor safety due to less rigorous product vetting.

By removing the need for individual SEC reviews under Section 19(b), exchanges can list qualifying crypto ETFs in 60-75 days instead of 240 days. This accelerates the launch of new crypto ETFs, potentially leading to over 100 new products within a year, as predicted by James Seyffart.

The simplified process makes it easier for smaller or…