Cboe and NYSE Arca Seek to Simplify Crypto ETF Listings with SEC Rule Change

Cboe and NYSE Arca have filed a rule change request with the U.S. Securities and Exchange Commission (SEC) to streamline the approval process for crypto exchange-traded funds (ETFs), aiming to reduce the need for individual regulatory clearances for each new product [1]. This move, highlighted by ETF analyst Nate Geraci, could significantly simplify the process by allowing issuers to list crypto ETFs under a unified framework, provided they meet specific criteria [1]. The request follows the SEC’s recent approval of in-kind creation and redemption mechanisms for crypto ETFs, a step that aligns the sector more closely with traditional fund structures [1].

The current regulatory framework requires exchanges to submit a 19b-4 form for every new crypto ETF, a process that is often lengthy and complex [1]. The proposed rule change could remove this procedural burden, enabling faster market entry for new products and enhancing overall market efficiency. If approved, it could encourage broader participation from institutional investors, who often favor in-kind mechanisms for asset management [1].

In parallel, the White House has taken steps to bring cryptocurrency regulations in line with those of traditional finance. The Working Group on Digital Assets, led by President Donald Trump, released a 168-page policy document advocating for clearer trading guidelines and reduced bureaucratic delays [1]. The report also calls for the SEC and CFTC to provide clarity on crypto custody, trading, and registration. These developments suggest a broader industry shift toward integration and innovation in the digital asset space.

Trump’s recent signing of the GENIUS Act, which focuses on stablecoin regulation, further reinforces this trend [1]. Meanwhile, the House of Representatives has passed the CLARITY Act and the CBDC Anti-Surveillance State Act, both of which aim to shape the structure of the crypto market and impose certain restrictions on central bank digital currencies [1]. These legislative efforts highlight growing political engagement with crypto and its regulatory implications.

The combined regulatory and legislative developments reflect a strategic move to position the U.S. as a more competitive and innovative hub for crypto ETPs. The proposed rule change by Cboe and NYSE Arca could serve as a catalyst for broader institutional adoption and market growth, while also addressing concerns around efficiency, liquidity, and transparency in the crypto ETF space [1].

Source: [1] Cboe, NYSE Arca move to streamline crypto ETF listings with SEC rule change request (https://cointelegraph.com/news/cboe-nyse-arca-crypto-etf-rule-change-sec)