The U.S. SEC approved new rules that simplify the listing of exchange-traded products (ETPs) based on commodities, including those backed by cryptoassets.
The measure will allow three national securities exchanges to list and trade these instruments under generic standards, eliminating the need for individual agency approval in each case. From now on, if an ETP meets the established requirements, the exchange will only need to publish information on its website within five business days after the start of trading. “This simplified listing process will benefit investors, issuers, other market participants, and the Commission by reducing the time and resources needed to bring new ETPs to market,” the regulator stated in a press release.
According to the SEC, the goal is to facilitate market innovation without compromising investor protection.
In the past, the agency had been criticized for delays and regulatory hurdles, especially regarding ETPs linked to cryptoassets. Until now, exchanges were required to demonstrate that they had surveillance-sharing agreements with regulated markets of significant size, which limited the development of such products.
New Eligibility Criteria
With the approved rules, the underlying commodities of an ETP may be considered eligible if they meet any of the following requirements:
- Listed on a market that is a member of the Intermarket Surveillance Group.
- Underlie a futures contract with at least six months of trading on a market regulated by the CFTC.
- Represented in an ETF that allocates at least 40% of its net asset value to that commodity and is already listed on a national exchange.
In this way, ETPs based on cryptoassets will have a clearer and more direct path to market.
The SEC emphasized that exchanges will still need to file special applications when a product does not meet the generic standards. However, it left the door open for the criteria to be expanded in the future, for example, through objective quantitative standards that would provide more predictability and speed in the approval of new instruments.
