The following is an article and guest opinion from Jeremy Boynton, co-founder of Pure crypto.
As the Washington shutdown continues, it’s a good time to step back and evaluate an SEC decision that could shape innovation, advisors and everyday investors for years to come.
In a quiet but monumental change, the Commission recently approved generic listing standards for crypto exchange-traded products (ETPs). This means exchanges can list eligible crypto ETPs without submitting separate rule filings for each product – a structural change that ends years of case-by-case limbo.
The impact of this development cannot be overstated and should be on the short list of industry advancements – with moments like CME’s Bitcoin futures debut in 2017, Coinbase’s listing on Wall Street in 2021, the Ethereum merger in 2022, and the approval of spot Bitcoin ETFs in 2024.
Here are four reasons why this is a watershed moment for crypto.
1. Shorter lead times make new FTEs more viable
Previously, each ETP required an extended review by the SEC, which could take up to 240 days. Under the new rules, new products meeting predefined criteria can be launched in as little as 75 days. In regulatory terms, it’s the speed of light.
This reduces uncertainty and holding costs for issuers, which is essential because launching an ETF takes real money and resources. Start-up capital, legal/registration fees, listing and ongoing marketing fees are all costs that add up while a filing remains in limbo. Shortening the time frame makes more strategies economically viable and the pipeline fills up. A wave of spot ETFs is expected under the streamlined framework – not only BTC and ETH, but also SOL, XRP and others.
For an industry long stuck in limbo, the starting gun has been given.
2. Advisors can finally put crypto in wallets
Until now, accessing cryptocurrencies in a traditional wallet has been tricky. A handful of Bitcoin and Ether funds have emerged over the past couple of years, but many traditional brokerages and RIAs have been hesitant to move into crypto. One notable example is $10 trillion asset manager Vanguard, which refused to offer its clients access to spot Bitcoin ETFs. This conservative stance has left many investors on the sidelines and left advisors with few compliant options.
The new SEC rule change opens the doors for these investors and advisors. With a simplified journey for diversified crypto ETFs, advisors can finally offer index-style crypto exposure through familiar platforms. Within 48 hours of the rule change, Grayscale gained approval to convert its large-cap digital fund into the Grayscale Crypto 5 ETF (although it remains suspended pending final approval to begin trading), allowing its clients to invest in a basket of the five largest coins. With such products, a wealth manager can now invest in crypto as they would an S&P 500 or gold fund.
In practice, this standardization of crypto within a standard brokerage account means retirees can hold digital assets in their IRA alongside stocks and bonds. Or that RIAs can rebalance to crypto without operational gymnastics or compliance nightmares.
3. Regulated ETPs Unlock Crypto Integration With Banking
Beyond accessibility, this development deepens the integration of crypto with traditional finance.
When digital assets are in regulated packaging, they can connect powerfully to the existing financial system. JPMorgan Chase, whose management has long been skeptical of crypto, recently announced that it would accept crypto ETF shares as loan collateral – similar to margin loans using stock ETFs as backing.
With more ETPs subject to custody and reporting standards, banks can more easily lend against these assets. The ability to borrow against crypto holdings makes crypto an active participant in banking and credit markets. Crypto is now less isolated; it has become part of the backbone of finance, just like stocks or Treasury bonds.
4. Clear rules spark the next wave of innovation
Perhaps the most notable change here concerns the fundamental philosophy at the regulatory level.
After years of uncertainty, US regulators are finally signaling that crypto has a place inside the system, not outside. SEC Chairman Paul Atkins launched Project Crypto, directing the Commission to address securities laws so that markets can migrate on-chain.|
This clarity of mission – from the top down – is what drives innovation. When companies know the limits, they can act with confidence. We are already seeing traditional companies and startups rushing to launch products under the updated rules – from multi-coin index ETPs to experimental yield-bearing token funds.
The result will not only be new FTEs; it will be a test of American competitiveness. Eventually, we could see tokenized real estate ETFs or other thematic products. If the United States sets the rules, innovation will happen here. Otherwise, it happens abroad. By accelerating crypto into mainstream financial products and explicitly endorsing an on-chain future, Washington is keeping America in the game — and maybe even putting it back in the lead.
This rule change is among the most significant for the industry in years. It’s not just about ETPs, it’s also about recognizing crypto as a legitimate part of modern wallets. For advisors, this means being able to respond more comprehensively to client demand. For investors, this means choice and convenience. For innovators, this means the US is back in the game. The integration of crypto into everyday finance has been slow to happen, but it’s now here – and it’s accelerating under clear and safe rules.
The road to a truly on-chain financial system has opened and I, for one, am optimistic about where it will lead.
Disclaimer – this was a promoted (paid) post as part of our contributor thought leadership program.
