The "Normandy Moment" of Encrypted ETFs: The SEC's new regulations acquiesce pledge income, and Coinbase becomes the biggest winner

Written by: Luke, Huoxing Finance

In January 2024, the approval of Bitcoin spot ETFs marked a successful "beachhead landing" for crypto assets to breach the fortress of traditional finance. However, the true "Normandy moment"—a large-scale, organized "main force" landing that will determine the future of the battlefield—has quietly begun with a seemingly unremarkable regulatory document released recently.

Recently, rule change proposals (such as SR-CboeBZX-2025-104) submitted by Cboe BZX Exchange and Nasdaq aim to establish a "universal listing standard" fast track for altcoins. This is not a small-scale reinforcement but a carefully planned "institutionalized landing." Its core strategies are twofold: first, to create a standardized highway allowing subsequent forces (altcoin ETFs) to pour in continuously; second, to quietly add a "new weapon" to the arsenal—regulatorily "tacitly approved" staking yields.

In this grand landscape of financial transformation, when we carefully examine the geography of the "landing zone" and the controllers of the "logistics supply lines," one name stands out: Coinbase. This largest U.S. crypto exchange, leveraging its unparalleled ecosystem advantages, is inadvertently positioned as the "biggest winner" by these new rules.

From Case-by-Case Approval to a Highway

Previously, the birth of any crypto ETF required going through the SEC’s lengthy and rigorous "case-by-case approval" process, fraught with uncertainty. The new "universal listing standards" completely change the game rules, with the core being: any crypto asset whose futures contracts have traded stably for six months on a CFTC-regulated market (such as CME or Coinbase Derivatives Exchange) will qualify for its spot ETF to be listed via the "fast track."

The SEC intends to establish a scalable regulatory framework, but objectively, this has "delegated" part of the approval power. The new center of power has shifted from the SEC’s offices in Washington to the doorsteps of platforms that can provide compliant futures trading.

While CME is also part of this, it focuses more on mega-cap assets like Bitcoin and Ethereum. For the vast world of altcoins, the true "beachhead" is undoubtedly Coinbase Derivatives Exchange, which has the flexibility and willingness to list more diverse altcoin futures. Therefore, the first and most critical hurdle for a project to have its token ETF-ized has shifted from lobbying SEC officials to striving to list its futures on Coinbase Derivatives.

First Wave of Landing Forces: The Shortlist Is Clear

These clear rules allow us to move beyond pure speculation and, based on a definite formula, directly identify the first batch of "landing forces." These "vanguard troops" have completed "pre-war drills" in compliant futures markets, with ample ammunition, waiting only for the bugle call to charge.

Based on this logic, the shortlist of the first likely approved altcoin ETFs is evident:

Candidates from the Coinbase camp include: Avalanche (AVAX), Chainlink (LNK), Polkadot (DOT), and even the highly popular Shiba Inu (SHB). Futures contracts for these tokens were filed or listed on Coinbase Derivatives as early as 2024, and by the time the new rules are formally adopted, their "service time" will far exceed the six-month hard requirement.

A heavyweight candidate from the CME camp is Solana (SOL), whose futures products have long traded stably on CME—home to numerous institutions—boasting a strong compliance foundation.

Thus, while the market debates "who will be approved next," the answer is already hidden in exchanges’ public information. These assets will be the first wave of ETF products to storm Wall Street after the new rules take effect. They will be followed by assets like Cardano (ADA), whose futures were listed later, forming the "second echelon."

Why Coinbase Is the "Chosen One"

If becoming the "access gate" is the strategic advantage brought by the new rules, the provisions on staking directly point to huge commercial interests. One can grasp the power of this clause by envisioning a "Solana ETF with staking yields" or a "Polkadot ETF with staking yields."

Clause 14.11(e)(4)(G) of the new rules subtly stipulates that as long as ETF issuers ensure 85% of assets are redeemable at any time or establish a comprehensive "liquidity risk management plan," ETF products including staking yields are permitted. This amounts to "tacit approval" of packaging the native yield mechanisms of the DeFi world into Wall Street’s most mainstream financial products.

And who benefits most from this business? Again, Coinbase. As one of the world’s largest and most trusted institutional staking service providers, Coinbase Custody is almost the preferred partner for all ETF issuers. Whether any token on the above list is ETF-ized with staking, Coinbase will earn service fees and revenue shares by providing custody and staking services, leading to explosive growth in its staking business unit.

Overall, the SEC’s new rules are like a tailor-made gift for Coinbase’s "full-stack" business model. They perfectly connect every link in the Coinbase ecosystem, forming a powerful commercial flywheel:

- Futures market (entrance): Coinbase Derivatives becomes the "qualification certification center" for ETFs, attracting all projects eager for mainstream acceptance, bringing trading volume and listing fees.

- Staking and custody (engine): Coinbase Custody serves as the "core infrastructure" for staking-enabled ETFs, supporting underlying assets of future ETFs like AVAX, SOL, and DOT.

- Spot market (foundation): The ETF subscription and redemption mechanism will bring massive trading depth and fee revenue to Coinbase’s spot market.

- Regulatory cooperation (moat): ETF issuers must sign "surveillance-sharing agreements" with underlying futures markets, making Coinbase an indispensable "regtech" partner for Wall Street giants like BlackRock and Fidelity in the altcoin space.

These interconnected advantages transform Coinbase from a crypto industry leader into the "core hub" connecting the crypto world and traditional finance.

Conclusion: From "Watching the SEC" to "Focusing on Coinbase"

Just as the Normandy landing marked a turning point in World War II’s European theater, the proposal of "universal listing standards" signifies a turning point in crypto assets’ integration into mainstream finance. It heralds a new era: an era of altcoin ETF-ization driven by clear rules and capable of large-scale replication.

In this grand historical process, the SEC, through an ingenious institutional design, solved its own regulatory challenges while inadvertently "crowning" a new king. The market’s focus may shift from daily speculation about the SEC’s stance to a more practical focus on Coinbase’s next moves—because every decision it makes on listing futures could sound the assembly call for the next ETF to land on Wall Street, with the shortlist already clear.

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