The U.S. Securities and Exchange Commission (SEC) is exploring a groundbreaking shift in how cryptocurrency-based exchange-traded funds (ETFs) are reviewed and approved. According to recent reports, the regulator is in early discussions to establish a generic listing standard that could dramatically streamline the approval process for spot crypto ETFs—potentially ushering in a new era of faster, more efficient market access.
This proposed framework could allow qualifying digital assets to bypass one of the most time-consuming hurdles in the current approval pipeline: the 19b-4 filing. If implemented, ETF issuers would only need to submit the S-1 registration statement, followed by a 75-day waiting period. Unless the SEC raises objections during that window, the fund could proceed directly to listing—significantly accelerating time-to-market.
👉 Discover how streamlined crypto ETF approvals could reshape investment opportunities.
Current Crypto ETF Approval Process: A Two-Step Hurdle
Today, launching a spot cryptocurrency ETF in the United States involves a complex, dual-track regulatory process:
- Exchange-Level Filing (Form 19b-4): The national securities exchange where the ETF will be listed must file a rule change proposal with the SEC under Section 19(b) of the Securities Exchange Act, using Form 19b-4. This step ensures the exchange has surveillance-sharing agreements and mechanisms to prevent market manipulation.
- Issuer-Level Filing (Form S-1): Simultaneously, the ETF sponsor submits a registration statement using Form S-1, detailing the fund’s structure, holdings, fees, and risk factors.
Both filings must be independently reviewed and approved by the SEC—a process that often takes months or even years due to legal scrutiny, public comment periods, and repeated requests for additional information.
This cumbersome procedure has historically slowed down innovation in the crypto space, leaving many promising asset classes waiting indefinitely for regulatory clarity.
A New Path Forward: The Proposed "Generic Listing Standard"
According to exclusive reporting by Eleanor Terrett of FOX Business, the SEC is now considering a more scalable and standardized approach.
“The @SECGov is in the early stages of creating a generic listing standard for token-based ETFs in coordination with exchanges. The thinking… is that if a token meets the criteria, issuers could skip the 19b-4 process, file an S-1, wait 75 days, and the [ETF] could list.”
— Eleanor Terrett, July 1, 2025
Under this model, certain well-established cryptocurrencies could qualify for a fast-track review path based on predefined eligibility criteria. Once a digital asset is deemed compliant with these standards, any future ETF built around it would no longer require individual exchange rule changes—eliminating redundant reviews and reducing administrative overhead.
This shift mirrors how traditional financial markets handle standardized products, enabling scalability without compromising investor protection.
What Criteria Might Qualify a Cryptocurrency?
While official guidelines have not yet been published, industry experts speculate that the following factors could form part of the core evaluation framework:
- Market Capitalization: Larger, more mature assets like Bitcoin and Ethereum are likely front-runners.
- Trading Volume & Liquidity: High daily volume across regulated and transparent exchanges.
- Price Stability & Resistance to Manipulation: Assets with deep order books and global price consensus.
- Regulatory Clarity: Projects with clear legal status and compliance history.
- On-chain Transparency: Publicly verifiable transaction data and smart contract audits.
Coins such as Solana (SOL), Litecoin (LTC), Dogecoin (DOGE), and Ripple (XRP) are among those currently awaiting ETF decisions. The introduction of a generic standard could determine whether these assets gain institutional-grade investment vehicles in 2025 and beyond.
👉 See how emerging crypto regulations may open doors for next-gen ETFs.
Implications for Investors and the Crypto Market
The ripple effects of a simplified approval mechanism would extend far beyond regulatory efficiency:
- Faster Product Innovation: Asset managers could bring new ETFs to market quicker, responding dynamically to investor demand.
- Lower Launch Costs: Eliminating repetitive 19b-4 filings reduces legal and compliance expenses for sponsors.
- Increased Market Competition: More players can enter the space, driving down fees and improving fund structures.
- Broader Retail Access: Simplified listings mean more diversified crypto investment options for everyday investors through familiar brokerage platforms.
Moreover, this move signals growing regulatory maturity—a sign that digital assets are being treated less as speculative novelties and more as legitimate components of modern financial infrastructure.
Frequently Asked Questions (FAQ)
Q: What is a "generic listing standard" for crypto ETFs?
A: It's a proposed framework that would allow certain qualified cryptocurrencies to have standardized ETF listing rules. If adopted, eligible assets could skip the lengthy 19b-4 exchange filing process, requiring only an S-1 registration and a 75-day review window.
Q: Which cryptocurrencies might qualify under this new system?
A: While no official list exists yet, high-market-cap, liquid, and widely traded assets like Bitcoin, Ethereum, Solana, Litecoin, Dogecoin, and XRP are potential candidates based on current market dynamics and ongoing ETF applications.
Q: Will this make crypto ETFs safer for investors?
A: The goal is not just speed but also consistency. By setting clear eligibility rules upfront, the SEC can ensure only transparent, resilient assets enter the ETF ecosystem—potentially enhancing investor protection over time.
Q: When could this new standard take effect?
A: As of mid-2025, the idea remains in early development. No formal proposal or timeline has been released by the SEC. However, growing momentum suggests it could become a focal point in upcoming regulatory discussions.
Q: Does skipping Form 19b-4 reduce oversight?
A: Not necessarily. The SEC would still maintain full authority over the S-1 review process and could intervene at any point. The change aims to eliminate redundancy—not oversight—by leveraging existing market surveillance partnerships.
The Road Ahead: Toward Institutional Integration
The potential adoption of a generic listing standard represents a pivotal moment in the convergence of traditional finance and digital assets. Rather than evaluating each crypto ETF in isolation, the SEC would be shifting toward a rules-based, scalable model—one that supports innovation while preserving market integrity.
For investors, this means greater choice, faster access, and potentially lower costs. For the crypto industry, it’s a vote of confidence in long-term legitimacy.
As discussions continue between regulators and market participants, all eyes will be on which assets make the cut—and how quickly new funds can follow.
👉 Stay ahead of crypto regulation trends shaping tomorrow’s investment landscape.
Core Keywords:
crypto ETF, SEC approval process, generic listing standard, spot crypto ETF, Form 19b-4, Form S-1, cryptocurrency regulation, ETF innovation