Groundbreaking SEC Approval: New Listing Standards for Commodity-Based ETFs
In a significant regulatory development, the United States Securities and Exchange Commission (SEC) has introduced a fresh set of generic listing standards in September 2025. These standards apply to commodity-based exchange-traded products, including those linked to digital assets. This pivotal move by the SEC is expected to accelerate the listing process for spot Exchange-Traded Funds (ETFs) for altcoins such as XRP, potentially as soon as October. Industry experts are eagerly anticipating the arrival of Spot XRP ETFs by the end of October.
Accelerated Approval for Spot XRP ETFs Under New SEC Guidelines
The prospect of Spot XRP ETFs making their debut in October is highly anticipated. However, this optimism is currently overshadowed by the looming uncertainty caused by a federal government shutdown in the United States. This shutdown has severely hampered the SEC’s routine operations.
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Just prior to the shutdown, the SEC rolled out a new set of generic listing standards for commodity-based exchange-traded products. Previously, each new ETF was subjected to a meticulous case-by-case review under Section 19(b), coupled with an S-1 filing. This often led to months of regulatory delays, as witnessed in the case of Spot XRP ETF applications, many of which were submitted between January and March 2025 and are still pending approval.
Streamlined Process for ETF Listings
The newly implemented rules now empower exchanges like Nasdaq, NYSE Arca, and Cboe to automatically list qualifying ETFs if they meet specific predefined standards. As a result, the SEC has requested several issuers, including those behind ETFs for XRP, Solana, and Cardano, to withdraw and refile their applications under the new system. According to Kenny Nguyen, a prominent crypto commentator, all eleven XRP ETF filings have already met the generic listing standards deadlines from their initial application date and are prepared for simultaneous approval. With the new framework, ETF reviews can be completed within as little as 75 days, a window that these filings have already surpassed. However, the SEC’s new generic listing standards officially became effective on October 1, coinciding with the onset of a partial government shutdown in the US.
Impact of the Government Shutdown
The US government entered a partial shutdown on October 1 after lawmakers failed to agree on a new spending bill. This has left numerous federal agencies, including the SEC, without operational funds. Consequently, the review and approval process for all pending spot ETF applications, including those related to altcoins, have been put on hold. According to financial law firm McGuireWoods, while filings can still be submitted, most reviews, responses, and actions are currently suspended.
Spot XRP ETFs Poised for Launch Post-Government Reopening
The launch of Spot XRP ETFs is now contingent on the US Congress bringing the current shutdown to an end. Once the SEC resumes normal operations, the crypto market could experience a swift wave of ETF approvals. Under the SEC’s generic listing standards, only an S-1 registration, which includes disclosure of fund structure and risks, is required. This means that Spot XRP ETFs could potentially enter the market in October, as their deadlines under the new rules have been extended. Even using the previous timeline, all existing XRP ETF applications would surpass the 120-day deadline between October 18 and 25.
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