02.07.2025 00:35

The US Securities and Exchange Commission (SEC) is exploring a significant overhaul of its crypto ETF approval process, potentially slashing approval times dramatically. By eliminating the lengthy 19b-4 rule-change procedure, a process currently adding roughly 90 days to the approval timeline, the SEC aims to expedite listings to a mere 75 days. This streamlined approach hinges on focusing solely on the S-1 registration statement, a move intended to simplify the launch of token-based ETFs without sacrificing regulatory transparency.

This proposed shift represents a considerable departure from the SEC's current dual-track system. Instead of navigating both the S-1 filing and the cumbersome 19b-4 rule change, applicants would only need to submit the S-1, thus accelerating the entire process significantly. This efficiency boost is expected to benefit established digital assets with substantial liquidity and robust market activity, bringing them to market faster and more efficiently.

Furthermore, the SEC is actively collaborating with cryptocurrency exchanges to establish objective criteria for token eligibility under this new framework. While the specific metrics remain undisclosed, it’s understood that factors such as market capitalization and trading volume will play a crucial role in determining which tokens qualify for the expedited approval route. This collaborative effort aims to create a transparent and standardized process, ensuring consistent and predictable evaluations. The resulting clarity should bolster investor confidence and facilitate a more efficient market for crypto ETFs.