US Exchanges Ask SEC to Consider Rule Change to Speed Up Crypto ETFs

Two major U.S. exchanges have asked the Securities and Exchange Commission to approve a rule change that could significantly shorten the approval process for future crypto exchange-traded funds, automatically listing certain products without requiring case-by-case filings.

In separate filings submitted Wednesday, Cboe BZX and NYSE Arca proposed amending their listing standards to allow certain crypto ETFs to be listed without going through the SEC's rigorous review process under Rule 19b-4, a process that requires exchanges to submit proposed rule changes.

The exchanges argue this approach would bring crypto ETF treatment closer to existing rules for traditional asset classes, wherein they would apply to commodity-based trust shares tied to crypto assets like Bitcoin and Ethereum, provided they meet a set of predefined conditions.

If approved, the change could allow faster market entry for products tracking other assets such as Solana, XRP, or a basket of other tokens.

Equity and bond ETFs that meet specific requirements can already list without a separate rule filing.

But by extending that framework to digital asset trusts, Cboe and NYSE Arca are hoping they can remove unnecessary regulatory friction.

Andrew Rossow, a public affairs attorney and CEO of AR Media Consulting, told Decrypt that the regulatory implications extend beyond listing speed.

ETF issuers are becoming “more directly engaged with regulated broker-dealers in facilitating the acquisition and disposition of crypto assets,” he said, adding that now, they would need to “implement stronger operating procedures” as well as enhance protection mechanisms for crypto investors.

But the proposal does not seek to expand the type of products that can be listed, only to change the approval process for those already deemed permissible.

The concern, Rossow argued, is that this could enable "an even more selective regulatory process.”

By focusing on Bitcoin and Ethereum while sidelining other digital assets, he warned it risks creating “regulatory favoritism,” which could “fuel private interests.”

Until broader ETF eligibility emerges, such a “dangerous reality” could “stifle the genuine impact and potential of other crypto projects, both existing and those still to come.”

A response from the SEC could take months to process. The agency has up to 240 days to accept, deny, or request changes to the proposal. In the past, it has taken the full period for comparable filings.

Cboe BZX, NYSE Arca, and the SEC did not immediately return a request for comment.