The Cboe (Chicago Board Options Exchange) and NYSE Arca have both submitted requests to the Securities and Exchange Commission (SEC) for a rule change that aims to streamline the process for listing crypto Exchange Traded Funds (ETFs). This move aligns with broader efforts to integrate cryptocurrency into traditional financial frameworks.

Currently, the regulatory framework requires exchanges to file a 19b-4 form for each new crypto ETF, which initiates a often complex review process by the SEC. The proposed rule change would establish a unified framework for listing crypto funds, potentially eliminating the need for individual approvals for each new fund. Under this framework, issuers would no longer need to seek specific approval for each crypto ETF, provided they meet certain criteria.

ETF analyst Nate Geraci highlighted the significance of this filing. If approved, it would mark a significant step towards integrating cryptocurrency into traditional financial frameworks.

These filings coincide with efforts from the White House to align cryptocurrency regulations with those of traditional finance. The President's Working Group on Digital Assets has released a comprehensive policy document advocating for clearer trading guidelines and relaxed restrictions on blockchain innovation. Key suggestions include urging the SEC and Commodity Futures Trading Commission (CFTC) to clarify federal rules on crypto custody, trading, and registration. The report also calls for the elimination of bureaucratic delays that hinder the rollout of innovative financial products.

Cboe has also proposed to amend Rules 4.3, 4.20, and 8.30, to allow the Exchange to list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF.

While these regulatory developments signal progress, the SEC has recently delayed decisions on certain crypto ETFs, such as the Grayscale Solana ETF. The SEC seeks more time to evaluate whether the proposed ETF meets listing and trading requirements. Bloomberg senior ETF analyst Eric Balchunas pointed out positive signs as the SEC asked issuers to update their filings.