- The SEC is exploring letting crypto ETFs bypass the 19b-4 rule-change process.
- A standard S-1 form might be all that’s needed—if the ETF meets certain criteria.
- It could speed up crypto ETF approvals, especially for tokens with strong market stats.
In a pretty surprising twist, the U.S. Securities and Exchange Commission (SEC) is reportedly floating the idea of letting some crypto ETFs go live without jumping through the usual regulatory hoops. Journalist Eleanor Terrett dropped the scoop Tuesday, quoting a spokesperson who said the SEC is in early-stage chats with exchanges about setting up a standardized listing framework.
Basically, this could mean that crypto ETFs—assuming they meet certain criteria—won’t need to file a 19b-4 form anymore. That’s the clunky, time-consuming step where the listing exchange has to request a rule change just to get the product approved. Instead, fund issuers would only need to file a standard S-1 registration form and wait the usual 75 days. If everything checks out? Boom, they’re live.
A Big Deal for Crypto ETFs
This might sound minor, but it’s a big shift. Right now, crypto-related ETFs have to clear not one, but two separate hurdles: first the S-1, then the 19b-4. Both steps involve a ton of back-and-forth with the SEC, and delays are super common. Some applications sit in limbo for months—or get rejected altogether.
But with this new system, the SEC may be trying to make things smoother, quicker, and a lot more predictable for ETF issuers. Though it’s still early, insiders believe the qualifying standards could hinge on a few key metrics—stuff like market cap, liquidity, and daily trading volume. Basically, the token would need to be widely used and trade on regulated platforms without raising any red flags.
Why This Matters Right Now
Timing here is everything. A bunch of major asset managers are currently waiting for the SEC’s green light on their crypto ETF filings. And if this streamlined process becomes reality, it could mean faster launches, fewer headaches, and maybe even more confidence from big-time investors looking to enter the crypto space in a regulated way.
Still, don’t pop the champagne just yet—this is all still in discussion. No final decisions have been made, and like anything with regulators, things could change on a dime.
