The U.S. Securities and Exchange Commission (SEC) has recently approved a new set of generic listing standards for commodity-based trust shares on major exchanges such as Nasdaq, Cboe, and the New York Stock Exchange. This decision is seen as a positive step towards streamlining the approval process for exchange-traded products (ETPs) tied to digital assets, as reported by Fox Business reporter Eleanor Terret.
It is important to note that while the Generic Listing Standards represent progress, not all types of crypto ETPs will immediately qualify under these standards due to existing threshold requirements. Tushar Jain of Multicoin Capital pointed out that the standards do not apply to every type of crypto ETP and that threshold requirements still remain in place. He anticipates that the SEC will continue to refine these standards in the future.
The SEC’s order, issued on September 17, accelerates the approval of proposed rule changes filed by the exchanges. By adopting these standards, the SEC aims to expedite the process of bringing new commodity-based ETPs to market, potentially paving the way for a wider range of crypto investment products.
The SEC’s decision comes after years of deliberation and discussions between the regulator and exchanges on how to handle crypto-based products. Past applications for crypto ETPs have faced lengthy reviews, but the new generic listing standards are expected to reduce delays and provide greater clarity for issuers. However, the SEC has indicated that it may revisit and refine these standards as the market continues to evolve.
While this approval signifies progress in the regulatory landscape for crypto ETPs, experts caution that the “floodgates” for such products are not yet fully open. Future actions by the SEC will determine the extent to which these standards can be applied across different types of digital asset products.
Overall, the SEC’s approval of generic listing standards for commodity-based trust shares is a significant development in the crypto industry, potentially paving the way for a more streamlined process for bringing new ETPs to market. As the regulatory environment continues to evolve, market participants will be closely watching for further updates and refinements to these standards.