The U.S. Securities and Exchange Commission (SEC) has signaled a significant change in the introduction of cryptocurrency Exchange-Traded Funds (ETFs). According to the new draft regulations, specific digital assets must meet the condition of having futures trading for at least 6 months to be approved as a spot ETF. This new standard is expected to use Coinbase's derivatives platform as the key reference market, which is currently the most active in cryptocurrency derivatives trading.
According to Bloomberg ETF analyst Eric Balchunas, Coinbase's derivatives trading scope is broader than the Chicago Mercantile Exchange (CME), which may lead the SEC to consider Coinbase a more credible benchmark. Balchunas also explained that this approach ultimately grants the Commodity Futures Trading Commission (CFTC) a de facto decision-making power on which tokens are eligible.
The SEC's stance could positively impact major cryptocurrencies. BTC, ETH, LTC, XRP, Doge, ADA, SOL, Shiba Inu, DOT, AVAX, Chainlink, Stellar, HBAR, BCH, and others have been actively traded on the Coinbase derivatives exchange for a long time, putting them in a favorable position to quickly receive spot ETF approval.
In contrast, newer tokens like Trump Coin, which gained attention due to Trump, or BONK, which do not meet liquidity standards, will need to go through more complex procedures. These new tokens can follow the structure under the 'Investment Company Act of 1940', but this method has limitations in terms of regulatory complexity and liquidity.
ETF analyst James Seyffart noted, "This standard does not include criteria for market capitalization, circulation, or liquidity" and that "only the presence of futures market trading has become important." He also emphasized that Coinbase's derivatives exchange is the only pure crypto platform that has joined the SEC's International Surveillance Group (ISG).
If the SEC's new guidelines are finalized, analysis suggests that the standards for spot ETF issuance will be simplified, and the influence of exchanges within the regulatory framework will expand. Simultaneously, it will be difficult to avoid criticism that the SEC is entering a structure that allows selective access to the digital asset market under the pretext of investor protection.
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