SEC’s new regulations open the floodgates for crypto ETFs, with 10 major spot ETFs …

Author: SoSo ValueOn September 17, the U.S. Securities and Exchange Commission (SEC) officially adopted the ‘Generic Listing Standards for Commodity-Based Trust Shares’ (Release No. 34-103995). This is not merely a technical document but rather a significant ‘institutional gateway’—signaling that the listing of spot crypto ETFs will shift from case-by-case approval to a standardized, expedited process under a universal framework.Against the backdrop of the Federal Reserve recently initiating a new round of interest rate cuts and growing expectations of dollar depreciation, this institutional breakthrough brings dual resonance of ‘liquidity + institutionalization’ to crypto assets, marking one of the most emblematic regulatory events in the crypto market this year.In this article, we will address the following key questions:What exactly has changed with the new rules, and what impacts will they bring?Which cryptocurrencies will benefit first, and which spot ETFs are likely to be approved soonest?What should investors focus on? In the context of new regulations being implemented and shifts in capital flow logic, how can ordinary investors seize opportunities while managing risks?1. What has changed with the generic standards? A shift from ‘whether to allow’ to ‘how to regulate’Prior to the issuance of these new rules, spot crypto ETFs had to undergo a case-by-case approval process, requiring clearance of two regulatory thresholds:19b-4 Rule Change Approval — The exchange submits an application to the SEC to amend its rules, constituting a substantive review with the possibility of rejection by the SEC.S-1 Prospectus Approval —— Submitted by the ETF issuer to the SEC for approval, disclosing details such as fund structure, manager, and fees, with a focus on formal review.This dual approval process is not only lengthy but often slowed down by political maneuvering and compliance disagreements. For instance, applications for Bitcoin spot ETFs surged in 2021, but were rejected by the SEC at the 19b-4 stage during 2021-2022. A new batch of applications was submitted between May and July 2023, and ultimately, both the 19b-4 and S-1 filings were approved on the same day, January 10, 2024, after nearly eight months of back-and-forth.The ‘Universal Listing Standards’ passed by the SEC on September 17, 2025, brought about fundamental changes. These standards clarify that eligible commodity ETFs no longer need to file individual 19b-4 applications and can proceed directly through the S-1 approval process, significantly reducing approval time and costs.ETFs meeting the criteria must satisfy one of the following three pathways:The underlying commodity is traded on a member market of the ISG (Intermarket Surveillance Group), such as the New York Stock Exchange, Nasdaq, CME, or the London Stock Exchange.Futures contracts for the underlying commodity have been continuously traded for at least six months on a DCM (Designated Contract Market), with comprehensive cross-market surveillance sharing agreements (CSSA) established. DCMs are exchanges authorized by the CFTC (Commodity Futures Trading Commission), such as the CME, CBOT, or Coinbase Derivatives Exchange.There is already an ETF listed on a national securities exchange in the United States, with at least 40% of its assets allocated to the underlying commodity.Since most crypto-assets are considered ‘commodities,’ this rule is almost tailor-made for crypto spot ETFs. Among the options, the second pathway is the most feasible: as long as a crypto asset has futures contracts trading for six months on exchanges like the CME or Coinbase Derivatives, it can bypass the 19b-4 approval process, allowing its spot ETF to potentially launch quickly.Figure 1: Old and New Cryptocurrency Spot ETF Listing Approval Process (Data Source: SoSoValue)Compared to the previous model, the main changes brought by the new regulations are reflected in two aspects:1) Simplified approval process: 19b-4 is no longer a “stumbling block.”Under the old model, a spot cryptocurrency ETF needed to complete both the 19b-4 rule change and the S-1 registration statement dual approvals—both were indispensable. The previous Bitcoin and Ethereum ETFs followed this process: the review period for 19b-4 lasted up to 240 days, becoming a key factor slowing down the process. Under the new regulations, as long as the product meets unified standards, the exchange can directly proceed with the S-1 approval process, eliminating the lengthy back-and-forth of 19b-4, significantly shortening the listing cycle.2) Shift in focus of review authority: CFTC and DCM play more critical roles.The qualification review of futures contracts is gradually shifting from the SEC to the DCM (Designated Contract Market) and the CFTC (U.S. Commodity Futures Trading Commission). Under the current system, there are two primary ways for a DCM to launch a new contract:Self-Certification: The DCM only needs to submit a self-declaration to the CFTC one business day before the contract goes live. If no objections are raised, the contract will automatically take effect. This usually requires the spot market to have price transparency, sufficient liquidity, and controllable risks of market manipulation.Voluntary Approval: If the contract is controversial, the DCM may voluntarily apply for CFTC approval to obtain stronger legal protection.This means that as long as the spot market for a particular cryptocurrency is sufficiently healthy, the DCM has significant autonomy to promote the listing of its futures. Meanwhile, the SEC’s review of the S-1 primarily focuses on whether the disclosure is adequate and whether the product structure complies with regulations, which is more of a “formal review.”Overall, the SEC is transitioning from a case-by-case approver to a rule-setter. The regulatory attitude is also shifting from “whether to allow” to “how to regulate.” Under this framework, the introduction of spot cryptocurrency ETFs will become more efficient and standardized.II. Which cryptocurrencies are most likely to benefit? The ten mainstream coins that already have futures contracts and have submitted ETF applications will be the first to see their ETFs approved.Among the existing DCMs (Designated Contract Markets), Coinbase Derivatives Exchange, a subsidiary of Coinbase, boasts the most comprehensive range of crypto futures products, currently covering 14 cryptocurrencies. (See Figure 2 for details).Figure 2: List of futures already listed on Coinbase (Data Source: SoSoValue)According to SoSoValue data, there are currently 35 spot cryptocurrency ETFs in the pipeline for approval, covering 13 different cryptocurrencies. Except for SUI, TRX, and JitoSOL, futures for the remaining 10 cryptocurrencies have been trading on Coinbase Derivatives Exchange for o