Nasdaq has found a workaround to speed up crypto ETF options listings by asking the Securities and Exchange Commission (SEC) for permission to stop asking for permission on each new product. On July 28, the exchange submitted a rule change that would let it list options on crypto-backed exchange-traded funds (ETFs) using standardized criteria, bypassing the current process that requires separate regulatory approval for each new product.

How Does Nasdaq's New Framework Simplify Crypto ETF Options Approval?

The filing, tagged SR-ISE-2026-42, would create a framework for options on "commodity-based trust shares that incorporate digital commodities." If a crypto ETF meets specific benchmarks, its options can go live without needing individual SEC blessing. This approach mirrors how options on traditional commodity ETFs like gold, silver, and oil are already handled, creating a more efficient pathway for digital asset products.

To qualify for streamlined listing, crypto ETFs would need to meet concrete thresholds. Qualifying trusts must maintain at least $700 million in average daily global market value for each digital commodity they hold. There's also a surveillance requirement: derivatives tied to the trust's holdings must trade on a market surveilled by an Intermarket Surveillance Group (ISG) member, covering at least 85% of the trust's net asset value.

The remaining 15% of assets gets a partial exemption, meaning holdings without comprehensive surveillance agreements aren't an automatic disqualifier as long as they stay a minority of the portfolio. This flexibility allows multi-asset crypto ETFs to hold dominant positions in Bitcoin and Ethereum, which already trade on well-surveilled venues, while allocating smaller slices to assets like Solana that may have thinner surveillance infrastructure.

Why Is This Rule Change Happening Now?

The timing reflects both recent market developments and stalled legislative efforts. Back in January 2026, Nasdaq removed the 25,000-contract position limits on Bitcoin and Ethereum ETF options, a move that opened the floodgates for larger institutional positions. The new rule change builds on that momentum by removing the approval bottleneck that has slowed product launches.

The Digital Asset Market Clarity Act, known as the CLARITY Act, was supposed to draw jurisdictional lines between the SEC and the Commodity Futures Trading Commission (CFTC) on digital assets. However, updated legislative texts have circulated without Senate resolution. As of late July 2026, the bill remains stuck in negotiations, leaving regulatory gaps that market participants like Nasdaq are working to fill through alternative channels.

What Are the Practical Implications for the Options Market?

• Speed to Market: Right now, every new crypto ETF option requires its own filing, review period, and approval process that can stretch for months, creating a bottleneck that doesn't exist for traditional commodity ETF options.
• Clear Targets for Issuers: The $700 million threshold creates a concrete target for ETF sponsors to hit if they want their products to qualify for streamlined options listings, providing clarity on what's needed to access faster approval.
• Surveillance Flexibility: The 85/15 split on surveillance coverage allows portfolio managers to balance well-monitored assets like Bitcoin and Ethereum with emerging digital assets, though the SEC's comment period will likely scrutinize whether that 15% carve-out is appropriately sized.

If the SEC approves the rule change, the most immediate effect would be speed. The current approval process for each new crypto ETF option can take months, creating delays that don't affect traditional commodity products. The $700 million threshold also creates an interesting dynamic for asset issuers, giving them a clear benchmark to work toward.

There is a risk dimension worth noting. The 15% flexibility on surveillance coverage means a portion of some trusts' holdings could sit in less-monitored markets. The SEC's comment period on the filing will likely draw scrutiny on whether that 15% carve-out is appropriately sized and whether it adequately protects investors.

What Does This Mean for Broader Crypto Regulation?

Nasdaq's filing signals that market participants are moving forward with infrastructure improvements even as Congress remains gridlocked on comprehensive digital asset legislation. While the CLARITY Act stalls, exchanges and regulators are finding incremental ways to modernize crypto market structure. This approach allows the industry to function more efficiently without waiting for lawmakers to resolve jurisdictional disputes between the SEC and CFTC.

The rule change also reflects a broader shift toward treating crypto assets more like traditional commodities in regulatory frameworks. By applying the same options approval logic used for gold and oil ETFs to digital commodity ETFs, Nasdaq is normalizing crypto within existing market infrastructure rather than treating it as a special case requiring unique approval processes.

Meanwhile, international regulatory efforts are advancing. The United States and United Kingdom have reaffirmed their shared commitment to closer financial regulatory cooperation on digital assets and artificial intelligence. During the 13th official meeting of the U.K.-U.S. Financial Regulatory Working Group held in London on July 8, senior government officials and regulators from both nations emphasized close, ongoing cooperation on digital finance and responsible growth of digital assets.

Both U.S. Treasury and HM Treasury emphasized the importance of modernizing regulation and protecting financial stability to boost economic growth. Participants discussed issues related to digital finance, with broad support expressed for the responsible use and growth of digital assets and digital financial innovation globally. U.S. authorities updated on the implementation of the GENIUS Act for stablecoins and on the CLARITY Act, which remains stuck in legislative limbo.

The Transatlantic Taskforce for Markets of the Future identified targeted steps that can improve connectivity, enable more efficient and transparent markets, and inform potential alignment of regulatory frameworks between the two countries. The list of ten recommendations included several focused on boosting the tokenization sector in both countries, seeking to identify common approaches to the regulatory treatment of tokenized assets, and working together to support financial innovation through robust policy frameworks for digital financial services.

On stablecoins, the Taskforce aimed to promote convergence between the countries' two regimes and to support dynamic cross-border stablecoin activity. It affirmed that stablecoins held out as money should be fully backed on at least a one-to-one basis by high-quality, liquid assets, and that reserve, liquidity, and other prudential requirements should seek to mitigate risks and avoid unnecessary fragmentation.

The two Treasuries committed to stimulating competition and innovation through policies that facilitate the coexistence and circulation of different forms of digital money solutions, and to regulatory approaches that promote innovation and resilience without imposing burdensome constraints that undermine commercial viability, create barriers to entry, or hinder competition. The Working Group plans to reconvene in early 2027 to continue its ongoing biannual dialogue.