CBOE Files with SEC to Change Crypto ETFs Listing Rule

In an attempt to streamline ETF approval processes, the Chicago Board Options Exchange (CBOE) has initiated a significant move that could reshape the landscape of crypto exchange-traded funds (ETFs) in the United States.

In a filing with the U.S. Securities and Exchange Commission (SEC), the CBOE proposes a rule change that would establish a unified framework for listing crypto fund products, potentially eliminating the need for individual approvals for each new fund offering.

Cboe Pushes for ETFs Rule Change

This development, highlighted by ETF analyst Nate Geraci, suggests a streamlining of the often-complex and lengthy approval process currently in place. Under existing regulations, exchanges are mandated to submit a 19b-4 form for every new crypto ETF, triggering a comprehensive review by the SEC.

Moreover, the proposed rule change bypasses this requirement, allowing issuers to list crypto ETFs that meet predefined criteria without seeking specific approval for each product. NYSE Arca reportedly filed a similar proposal, indicating a broader industry push towards a more standardized approach.

Notably, the day before the CBOE filing, the SEC allowed crypto ETFs to create and redeem shares using actual crypto instead of cash. This change makes crypto funds more similar to traditional funds. Authorized buyers can now obtain shares by using the digital asset, not money, mirroring how regular ETFs operate.

Additionally, the White House recently put out a long policy paper about digital money from President Trump’s group. It asked for more explicit trading rules and fewer limits on new blockchain ideas.

Nonetheless, these suggestions aim to speed up the release of new crypto products for people and ask the SEC and CFTC to clarify federal rules for keeping, trading, and signing up for crypto. The paper also recommends removing “slow government processes” that hinder the introduction of new financial products.

Recent Regulatory Push

Adding to this progress, President Trump recently signed the GENIUS Act into law. This sets up a full set of rules for stablecoins. Congress has also been busy. The House of Representatives passed the CLARITY Act and the CBDC Anti-Surveillance State Act.

Moreover, these laws deal with how crypto markets work and limit central bank digital money, respectively. The Senate will look at these bills after the August break.

The CBOE’s suggested rule change is for shares based on goods, like Bitcoin ETFs that use the actual Bitcoin and similar products. If this is approved, this set of rules would eliminate the need for separate approvals, as long as the ETFs meet the set standards.