Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
SEC Clears Path for Fast Track Crypto ETFs
Regulation | Sep 18, 2025
U.S. SEC Approval of New Listing Standards Opens the Door for Faster Digital Asset ETFs
On September 17, 2025, the U.S. Securities and Exchange Commission (SEC) approved generic exchange listing standards for Commodity-Based Trust Shares. This decision means that exchanges can now list new products without filing for case by case approvals, including those backed by digital assets.
This policy update is arguably the most significant since the SEC’s approval of spot bitcoin ETFs earlier this year, and is anticipated to accelerate the rollout of digital asset funds across U.S. markets.
SEC Adopts Generic Exchange Listing Standards
Commodity Based Trust Shares are exchange traded products that hold physical assets like metals or digital assets, instead of being regulated under the Investment Company Act of 1940. Under the new rules, this means that digital assets can be listed more quickly if they meet certain standards.
See: Canada Launches First Spot Solana ETFs With Staking
The new framework effectively creates a fast track for digital asset ETFs. Before every product required a Section 19(b) filing with reviews that could stretch for months.
To qualify, the product must either track an asset traded on a market that is part of the Intermarket Surveillance Group with data sharing agreements, be linked to a regulated futures contract that has been trading for at least six months, or have at least 40% of its portfolio in a single commodity already covered by another listed product.
The SEC stressed that even though these products are not investment companies, they must still publish key disclosures, including their holdings and daily net asset value, similar to ETFs.
In addition to the new generic listing standards, the SEC also approved two specific applications that will give investors more ways to gain regulated exposure to crypto assets:
- Grayscale Digital Large Cap Fund - an ETF that holds a basket of spot digital assets based on the CoinDesk 5 Index.
- Covered p.m.-settled options on the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe Bitcoin U.S. ETF Index, including third Friday expirations, nonstandard expirations, and quarterly expirations.
Reactions and Implications
Not all commissioners agreed. Commissioner Caroline Crenshaw warned that generic standards could change responsibility for investor protection. Read the formal statement 'Passing the Buck' by Commissioner Caroline Crenshaw for her concerns about speed and scrutiny in volatile markets.
Market observers expect a wave of new filings.
For investors, more products mean greater choice and a need to understand custody, valuation, and disclosures.
See: SEC Clears Crypto Staking. What It Means for Canada
For fintechs and asset managers, shorter timelines create room for innovation in fund design, multi asset strategies, and derivatives.
Commissioner Hester Peirce welcomed the decision as overdue. In her statement on the approval , she noted that generic listing standards “eliminate the need for prior SEC approval under Section 19(b)” and would reduce time and resources required to bring new products to market. Peirce acknowledged past delays and court rulings that pushed the SEC to open a path for spot crypto ETPs, and she emphasized that the new rules provide alternative eligibility criteria beyond surveillance sharing agreements. She argued that the streamlined process will benefit investors, issuers, market participants, and the Commission itself by increasing predictability and efficiency.
Canadian Regulators Face Increasing Pressure as U.S. Moves Forward
Canada approved the first spot bitcoin ETF in 2021, but most digital asset funds are still reviewed case by case. By approving new generic exchange listing standards, the United States has adopted a scalable model that could influence regulators globally.
See: CSA Consultation on New Canadian ETF Rules
If Canada doesn't modernize its framework, fintech innovators and investor capital could drain south where products can launch faster. Aligning with an efficient standard could help maintain Canada’s leadership in fintech while ensuring investor protections.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create aa vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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