The US Securities and Exchange Commission is considering a significant move that may make issuing cryptocurrency ETFs much easier. According to journalist Eleanor Terrett, the SEC is in talks with exchanges about developing a standardized method for listing crypto ETFs.
Crypto ETFs currently face two significant hurdles: a special rule-change request (known as a 19b-4) and a comprehensive S-1 registration. Both take time and frequently encounter delays.
The proposed idea would exempt crypto ETFs from the 19b-4 if they fulfill certain criteria, such as minimum market size and trading volume. Issuers would only be required to submit an S-1 and wait 75 days for SEC review.
If approved, this modification might hasten the establishment of new cryptocurrency funds and provide greater clarity to the process. Asset managers and crypto investors are keeping a close eye on the situation, hoping for fewer hurdles and clearer laws as crypto products expand.
