The US Securities and Exchange Commission has approved a set of listing standards for commodity-based trust shares, opening the door for digital asset listings without requiring individual approvals.
The decision, detailed in SEC filings on stock exchanges like the Nasdaq, NYSE Arca, and Cboe BZX, on Wednesday, would streamlines the process under Rule 6c-11, significantly reducing approval timelines, which have taken several months in the past.
“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,” SEC Chair Paul Atkins said in a separate statement.
”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.”
It comes as spot ETF applications for the likes of Solana (SOL), XRP (XRP), Litecoin (LTC) and Dogecoin (DOGE) await official approval.
The SEC was facing deadlines from October onwards to decide on those cases, in addition to a handful of others.
SEC sets out clear standards
To be eligible for listing, a crypto spot ETF must hold a commodity that either trades on a market that is part of the Intermarket Surveillance Group with surveillance access, or underlies a futures contract listed on a designated contract market for at least six months with a surveillance-sharing agreement in place.
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Alternatively, it may be eligible if it is already tracked by an ETF with at least 40% exposure listed on a national securities exchange, the securities regulator said.
An exchange will need to submit a rule filing with the SEC when seeking to list and trade crypto exchange-traded products that do not meet the approved generic listing standards.
Crenshaw flags investor risk concerns
SEC Commissioner Caroline Crenshaw expressed concern over the new listing standards, warning that they could lead to a market flooded with products that haven’t been fully vetted for investor protection.
“The Commission is passing the buck on reviewing these proposals and making the required investor protection findings, in favor of fast tracking these new and arguably unproven products to market.”
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This is a developing story, and further information will be added as it becomes available.
