A set of amendments from the Securities and Exchange Commission (SEC) and the launch of China’s offshore yuan stablecoin demonstrate how cryptocurrencies have moved further into mainstream finance in recent months. The improved regulatory clarity and global competition have put governments and financial services companies alike under greater pressure to support innovation while defining clear guardrails for decentralized finance.
SEC approves generic listing standards for crypto ETFs
In September, the SEC approved several amendments that allowed major stock exchanges in the country to adopt generic listing standards for ETFs holding cryptocurrencies and other spot commodities. Under the previous rules, issuers faced a lengthy review process for each new product, potentially spanning to 240 days. However, the new rules reduce this waiting period to as little as 75 days, while simplifying the approval path for funds whose underlying assets have regulated futures markets. The rule changes are widely regarded as a watershed moment for mainstream crypto adoption, although analysts remind that investor appetite for the many lesser-known tokens remains unclear.
The rationale for the reforms is twofold, driven largely by the Trump administration’s vocal support for cryptocurrency and decentralized finance. First, regulators seek to create parity between crypto and other commodity ETFs to address the still-widespread perception that digital assets are commonly singled out for harsher regulatory treatment. Second, by requiring that an altcoin have a regulated futures market for at least six months before an ETF can be listed, the rules seek to protect investors and market integrity.
China’s offshore yuan stablecoin launches in Kazakhstan
While the changing regulatory landscape in the U.S. has dominated cryptocurrency news headlines in recent months, Hong Kong-based fintech AnchorX launched an offshore yuan stablecoin—AxCNH—in Kazakhstan in September. Part of China’s broader Belt and Road Initiative, a global infrastructure and economic development program launched in 2013, the decision was characteristic of the PRC government’s desire to reduce the dominance of the U.S. dollar in the cryptocurrency space.
China remains cautious regarding the use of private stablecoins domestically. However, by deploying AxCNH offshore, the country can test the international viability of a yuan-backed stablecoin without putting its tightly controlled internal financial system at risk. Moreover, the initiative exemplifies the continuing worldwide shift towards central bank digital currencies (CBDCs) and tokenized deposits; many analysts view stablecoins as a bridge between the inherent volatility of regular cryptocurrencies and future sovereign digital money.
These two events show how regulation and innovation in the crypto space are moving together. In the US, the SEC’s rule changes provide a regulated on-ramp that could attract trillions of dollars in capital, while China’s stablecoin experiment suggests a future where state-backed digital currencies coexist with—or even replace—private stablecoins.