SEC's New Listing Standards Could Fast-Track Cardano Spot ETF

The SEC has implemented new generic listing standards that are set to streamline the process for launching spot cryptocurrency exchange-traded products (ETPs). Under these new rules, issuers can list qualifying commodity-based trust shares without undergoing a bespoke rule change process. This could potentially reduce the time it takes to launch a spot ETF from 240 days to around 75 days.

CME's Cardano futures went live on February 9th, marking an important milestone for potential spot ETFs. The new generic listing standards require that the underlying asset underlie a futures contract on a CFTC-regulated designated contract market for at least six months. This ensures that the futures market develops sufficient depth to support cross-market surveillance.

Cardano's classification as a commodity or security remains a live risk factor, but the new framework is designed to help issuers navigate this uncertainty. The SEC's rules rely on the existence of regulated futures markets with meaningful liquidity to satisfy the surveillance logic.