The U.S. SEC has introduced new listing standards for crypto asset Exchange Traded Products (ETPs), requiring tokens to have at least six months of futures exposure on a Designated Contract Market to qualify for listing.
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The CBOE has provided a list of 18 approved tokens eligible for ETP listings under the new SEC standards.
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Tokens must have futures contracts traded on a Designated Contract Market for a minimum of six months with surveillance agreements in place.
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Bloomberg analyst Eric Balhunas confirms these standards align with market expectations for SEC approval of major crypto tokens.
U.S. SEC sets new crypto ETP listing standards requiring six months of futures exposure; discover which tokens qualify and what this means for the market.
What Are the New SEC Listing Standards for Crypto Asset ETPs?
The U.S. SEC’s new listing standards for crypto asset Exchange Traded Products (ETPs) mandate that underlying digital assets must have futures contracts traded on a Designated Contract Market for at least six months. This ensures sufficient market maturity and surveillance to protect investors. Additionally, exchanges listing these ETPs must maintain comprehensive surveillance sharing agreements with the designated markets.
Which Tokens Are Approved Under the New SEC Rules?
The Chicago Board Options Exchange (CBOE) has submitted a list of 18 tokens meeting the new criteria, including Litecoin (LTC), Dogecoin (DOGE), Polkadot (DOT), Avalanche (AVAX), Chainlink, Stellar, Solana (SOL), Hedera, and Cardano (ADA). These tokens have futures contracts traded on Coinbase’s derivatives exchange for over six months, making them eligible for ETP listings.
How Will These Standards Impact the Crypto Market?
These listing standards are expected to streamline the approval process for crypto ETPs, allowing major tokens to debut on U.S. exchanges by late 2025. The rules enhance investor protection by ensuring only well-established assets with sufficient market data and surveillance are listed. This development signals growing regulatory clarity and institutional acceptance of crypto assets.
What Was the SEC’s Previous Stance on Crypto ETPs?
Previously, the SEC approved in-kind creation and redemption processes for spot Bitcoin (BTC) and Ethereum (ETH) ETFs, allowing shares to be created or redeemed using the underlying crypto assets instead of cash. This accelerated approval process benefited major issuers such as BlackRock, Fidelity, Ark Invest, and VanEck, and applied to exchanges like Nasdaq, NYSE Arca, and Cboe BZX.
Comparison of Crypto Tokens Eligible for ETP Listing
| Litecoin (LTC) | 6+ months | Comprehensive surveillance agreement |
| Dogecoin (DOGE) | 6+ months | Comprehensive surveillance agreement |
| Polkadot (DOT) | 6+ months | Comprehensive surveillance agreement |
Why Are Futures Exposure and Surveillance Agreements Important?
Futures exposure ensures that a crypto asset has sufficient liquidity and market data, reducing price manipulation risks. Surveillance sharing agreements between exchanges and designated contract markets enhance transparency and investor protection by monitoring trading activities and preventing fraud.
Frequently Asked Questions
What is the minimum futures exposure required for crypto ETP listing?
The SEC mandates a minimum of six months of futures contracts trading on a Designated Contract Market for a crypto asset to qualify for ETP listing. This ensures market maturity and liquidity.
How do surveillance agreements affect crypto ETP approvals?
Surveillance sharing agreements between exchanges and designated markets help monitor trading activities and prevent manipulation, which is crucial for SEC approval of crypto ETPs.
Key Takeaways
- New SEC standards: Require six months of futures exposure for crypto ETP eligibility.
- Approved tokens: Include top cryptocurrencies like LTC, DOGE, and ADA.
- Market impact: Enhances investor protection and regulatory clarity for crypto products.
Conclusion
The U.S. SEC’s new listing standards for crypto asset ETPs mark a significant step toward regulatory clarity and market maturity. By requiring six months of futures exposure and robust surveillance agreements, these rules aim to protect investors and facilitate the listing of established tokens. This development is expected to accelerate the introduction of crypto ETPs on U.S. exchanges by late 2025, signaling growing institutional acceptance and mainstream adoption.
The U.S. SEC reportedly issued new ‘listing standards’ for crypto asset-based ETPs in a new exchange filing. What are the requirements for a listing?
- The list of approved tokens for ETPs has reportedly been issued by the CBOE.
- One of the requirements is for crypto assets to have exposure on Designated Contract Market for at least six months.
According to a recent post by Bloomberg ETF analyst Eric Balhunas, U.S. financial regulators have issued what he dubbed as new “listing standards” for crypto Exchange Traded Products or ETPs. The list was found in a filing addressed to the SEC from CBOE for Generic Listing Standards for Crypto Asset ETPs.
Based on the filing, the new rule proposed by CBOE would allow an issuer’s shares to be listed on an exchange if the underlying digital asset has a contract on a Designated Contract Market at a minimum period of 6 months of exposure.
“Provided that the exchange has a comprehensive surveillance sharing agreement, whether directly or through common membership in ISG, with such Designated Contract Market,” wrote CBOE in the filing.
The list shared by Balhunas consists of 18 coins in the crypto market, consisting of tokens like Litecoin (LTC), Dogecoin (DOGE), Polkadot (DOT), Avalanche (AVAX), Chainlink, Stellar, Solana (SOL), Hedera, Cardano (ADA) and many more. These tokens are allegedly going to be approved for an ETP by the SEC.
“Any coin that has futures tracking it for >6mo on Coinbase’s derivatives exchange would be approved (below is list). It’s about a dozen of the usual suspects, the same ones we had at 85% or above in our odds,” said Balhunas in his post about the SEC’s filing.
This aligns with market predictions that gave around 85% odds to these same coins being the first approved under modern SEC rules. They are expected to make their debuts on U.S. exchanges around September 2025 or October 2025.
The SEC’s previous note on crypto ETPs
Previously, the SEC announced that it has approved in-kind creation and redemption for all spot Bitcoin (BTC) and Ethereum (ETH) ETFs.
On July 28, the agency finalized orders which allowed participants to create and redeem shares of crypto ETPs using crypto as the underlying asset instead of cash. This means that ETPs can use major tokens like Bitcoin and Ethereum as the underlying asset.
The same rule applies to all approved spot Bitcoin and Ethereum ETFs, including those from major issuers like BlackRock, Fidelity, Ark Invest, and VanEck. The approvals were granted through accelerated processes to major exchanges, including Nasdaq, NYSE Arca, and Cboe BZX.
