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| SEC, Crypto |
New SEC policy permits ETFs for altcoins with over six months of futures trading on CME or Coinbase Derivatives
New SEC Framework Signals ETF Expansion
The U.S. SEC has introduced a new approval framework for crypto ETFs focused on futures-traded altcoins. Under this guideline, any cryptocurrency with futures listed for at least six months on CME or Coinbase Derivatives qualifies. This removes past barriers involving market cap, liquidity, or token circulation.
Altcoins Gain ETF Path—Excluding Memecoins
As a result, at least 12 altcoins now meet the SEC’s ETF eligibility under this streamlined condition. However, tokens without futures markets, such as memecoins and micro-cap assets, remain excluded. These tokens must still undergo separate registration under the Investment Company Act of 1940.
The ETF market is already booming with $151B in spot Bitcoin ETFs and $21.4B in Ethereum ETF holdings. This policy shift allows more diversified altcoin exposure for institutional investors. Meanwhile, the SEC is deferring ETF standards to CFTC-regulated futures markets, signaling regulatory alignment.
Coin Market 24/7 Commentary
The SEC’s relaxed ETF rule based on futures trading duration marks a pivotal shift in crypto regulation. Expect increased institutional inflows into qualified altcoin ETFs, driving liquidity across multiple Layer 1s. Futures-linked ETF eligibility may also influence listing strategies for projects targeting U.S. exposure.