Cboe and NYSE Arca File Joint Proposal for Crypto ETFs
The Chicago Board Options Exchange (Cboe) and NYSE Arca have taken steps to simplify the regulatory framework for crypto exchange-traded funds (ETFs). The two bourses separately submitted rule change proposals to the U.S. Securities and Exchange Commission (SEC) that, if ratified, would allow eligible crypto ETFs to list without separate SEC approvals.
Exchanges now must file a 19b-4 form on each new crypto ETF, usually starting a months-long review process. The new proposal would exclude funds that meet specific criteria from this filing requirement.
ETF analyst Nate Geraci noted the news on social media, describing the rule change as streamlining the process for approving crypto ETFs and “make the system more efficient and scalable.”
Ensuring Crypto Aligns With Traditional Fund Structures
The timing of the filings is noteworthy. The SEC just approved in-kind creation and redemptions for crypto ETFs yesterday — a step that aligns the operational dynamics of crypto funds with those of standard ETFs.
The change will boost institutional interest and could lower investors’ costs by simplifying fund inflows and outflows.
White House Advances Broader Crypto Policy
On the same day that the exchange filings were made, a broad proposal was released by the White House through the President’s Working Group on Digital Assets. The 168-page report calls for the harmonization of crypto regulations with traditional finance and eliminating delays that hinder innovation.
Some of the important proposals include federal regulations on custody of crypto assets, trading, and registration being made clearer and coordination between the SEC and the Commodity Futures Trading Commission (CFTC).
Legislative Momentum Builds
The regulatory momentum follows a series of crypto-targeted bills. In July, President Trump signed the GENIUS Act into law, opening the door to stablecoin regulation. The House recently passed both the CLARITY Act and the CBDC Anti-Surveillance State Act, with Senate consideration anticipated after the August recess.
All of these advancements represent a coordinated effort to move crypto regulation forward, increase access by investors, and prepare the ground for broader adoption of digital assets in the U.S. financial system.
