Commentary by: Margaret Rosenfeld, Chief Legal Officer at Everstake
For over a decade, the potential approval of cryptocurrency exchange-traded funds (ETFs) has been a highly debated topic within financial regulation. The initial requests for a Bitcoin (BTC) ETF were submitted many years ago. It wasn’t until early 2024 that spot Bitcoin ETFs finally received the green light from the U.S. Securities and Exchange Commission (SEC), following numerous rejections and a legal challenge that compelled the SEC to reconsider.
This lengthy process emphasized the regulatory hesitancy, political interest, and intricate structure surrounding digital asset markets.
However, just one year later, the discussion has undergone a significant transformation.
Currently, the SEC is evaluating proposals from Nasdaq, NYSE Arca, and Cboe BZX to implement standardized listing requirements for ETFs based on cryptocurrencies and commodities. These regulations would enable qualifying funds to be listed without needing specific SEC authorization under SEC Rule 19b-4.
If the SEC adopts these proposals, it would align crypto ETFs with conventional ETFs, which established their own streamlined framework through Rule 6c-11 in 2019. In essence, crypto ETFs may be transitioning from exceptional treatment toward mainstream acceptance.
The Significance
The current approval system for crypto ETFs is inefficient. Each new application can require 240 days or more, involving rounds of public feedback, staff evaluation, and frequently extended uncertainty. Standardized listing requirements could reduce these timelines to 60-75 days, significantly simplifying the process of introducing new products to the market. This increased speed and efficiency would be advantageous across the entire sector.
So far, only Bitcoin and Ether (ETH) ETFs have satisfied regulatory demands. Generic standards might pave the way for ETFs linked to other cryptocurrencies like Solana (SOL), XRP (XRP), or Dogecoin (DOGE), or even more complex structures such as staking-linked offerings or thematic baskets. These proposals ensure that only sufficiently developed tokens are eligible by creating defined eligibility criteria, such as requiring a six-month trading record on Commodity Futures Trading Commission-regulated futures markets, while also broadening investor options.
Some critics suggest that ETFs overly financialize crypto. However, ETFs offer the transparency, custody protections, and monitoring systems that regulators have sought for years. Incorporating digital assets into an ETF structure results in improved disclosures, uniform creation and redemption procedures, and oversight from regulated exchanges. This presents a safer and more transparent method for investors to gain exposure compared to offshore exchanges or unregulated platforms.
The U.S. has fallen behind in offering clear crypto regulations. The EU’s Markets in Crypto-Assets (MiCA) framework, Hong Kong’s licensing system, and Singapore’s approach to capital markets all provide more predictable pathways for digital asset products. If the SEC approves generic listing standards, it would clearly indicate that the U.S. intends to lead, rather than trail, in integrating digital assets into regulated markets.
Looking Ahead
The SEC may reach a decision in September 2025. If approved, exchanges could potentially list the first wave of altcoin ETFs before the year’s end. This would resolve a backlog of almost 100 applications and encourage innovation, including index funds, thematic baskets, and even hybrid ETFs that combine crypto with equities or commodities.
Related: SEC Delays Decisions on Truth Social, Solana, XRP Crypto ETFs
The SEC has already established the required foundation. In August 2025, it authorized in-kind creation and redemption mechanisms for crypto ETFs, aligning them with the standards for commodity funds and reducing expenses. This decision showed an understanding that operational efficiency and investor protection are not mutually exclusive. Generic listing standards are the next logical advancement.
The Importance of Proper Implementation
Skeptics may argue that crypto should not be treated the same as traditional assets. However, the purpose of regulation is not to determine which asset classes are worthy but to provide transparent and consistent rules that safeguard investors and preserve market integrity.
Postponing integration only sustains risk. Without accessible, regulated products, investors will seek exposure in less secure environments, including exchanges with inadequate custody protections, overseas platforms beyond U.S. oversight, or illiquid private placements. ETFs, conversely, bring crypto within the regulatory framework, where it can be monitored, disclosed, and supervised similar to any other financial product.
Maintaining U.S. Leadership in Market Innovation
The adoption of Rule 6c-11 in 2019 transformed the ETF industry, fostering innovation and reducing obstacles for issuers. The same opportunity now exists for crypto. By approving generic listing standards, the SEC would not be endorsing any specific token or project but simply providing a predictable framework for regulated exchanges and issuers to operate clearly.
Cryptocurrency is here to stay. The critical question is whether investors will access it through transparent, regulated products in U.S. markets or through opaque structures located overseas. The SEC’s decision regarding generic listing standards will significantly impact this outcome.
If the U.S. wants to remain a global leader in capital market innovation, the commission should move forward. The time has come to fully integrate crypto ETFs into the modern ETF landscape.
Commentary by: Margaret Rosenfeld, Chief Legal Officer at Everstake.
This article is intended for general informational purposes only and should not be considered as legal or investment advice. The views expressed are solely those of the author and do not necessarily reflect the views or opinions of Cointelegraph.