U.S. SEC Approves Rules to Fast-Track Commodity and Crypto ETFs

On September 17, 2025, the SEC announced in Release No. 2025-121 that it had approved these standards. The decision allows eligible products to be listed and traded without requiring a separate rule filing for every individual product. In practice, this means that exchanges such as Nasdaq, NYSE Arca, and Cboe BZX can now rely on generic listing frameworks to introduce certain commodity-based trust shares, including those tied to digital assets.

Alongside the SEC’s approval, exchanges submitted amendments to their own rules, such as Nasdaq’s Rule 5711(d), to align with the new framework. Once an exchange has generic standards in place, qualifying products can be listed under Rule 19b-4(e), avoiding the lengthy process of individual filings under Section 19(b) of the Securities Exchange Act.

The definition of Commodity-Based Trust Shares has been broadened under the SEC’s approval. It now covers trusts, limited liability companies, partnerships, or other similar vehicles that hold one or more specified commodities or commodity-based assets. In addition, such trusts may hold securities, cash, or cash equivalents. This broader scope creates regulatory room for a wider array of products to qualify under the generic standards.

Another key feature is that the shares must be issued in a minimum aggregate number, in exchange for a deposit of the underlying commodity or commodity-based asset, and in some cases cash. Holders of these shares must also retain the right to redeem them for the underlying assets or, alternatively, in cash, with the redemption corresponding to the amount of shares held. The standards make it clear that redemption and issuance mechanisms are central to investor protections.

The approval also sets out surveillance and transparency requirements. Exchanges are required to maintain strong systems to detect and deter fraud or manipulation. They must ensure disclosures such as net asset values and indicative values are available to the public, allowing investors to assess fair pricing. This represents the SEC’s attempt to balance the need for efficiency with ongoing investor safeguards.

Once listed, these products must also continue to meet minimum standards, such as maintaining an adequate number of outstanding shares, ensuring wide distribution among holders, and keeping transparent valuation and dissemination practices in place. If a listed product fails to uphold these standards, an exchange has the authority to suspend trading or begin delisting proceedings. This ensures that the framework remains robust even after initial listing.

For digital-asset products in particular, the rule change opens a clearer legal pathway. Products that hold crypto-commodities may qualify for listing provided they meet the generic standards, including disclosure and surveillance requirements. However, the standards are not universal: products that do not meet the criteria will still be subject to individual SEC review, meaning the process is streamlined but not without boundaries. Investors should remain aware that while regulatory clarity has improved, issues such as volatility, liquidity challenges, and valuation risks remain important factors to consider.

Although the new framework represents a significant regulatory shift, it does not eliminate risk. Volatility in crypto-asset markets, potential valuation discrepancies, and illiquidity in certain tokens can all affect ETP performance. While the SEC has provided a faster pathway for compliant products, exchanges and issuers are still responsible for ensuring that all standards are upheld. Regulatory clarity provides greater predictability, but it also increases the obligations on issuers to maintain proper practices over time.

Exchanges are expected to implement these rules quickly, and issuers with qualifying products are likely to pursue listings under the streamlined framework. This may shorten the time between filing and market introduction for certain crypto-asset products. Investors will be watching closely to see how many new funds launch under the system and whether these products attract significant capital inflows. At the same time, the SEC has preserved safeguards to ensure that products which do not meet the strict criteria cannot bypass oversight.

The SEC’s approval of generic listing standards for commodity-based trust shares marks a significant milestone in U.S. securities regulation. It creates a more efficient path for introducing new ETPs, including those tied to digital-asset commodities, while maintaining standards intended to protect investors and preserve market integrity. The long-term impact of this regulatory shift will depend on how issuers, exchanges, and investors navigate the opportunities and responsibilities it creates.