SEC eyes 75-day crypto ETF listing rule, replacing 19b-4 process with S-1 filing to speed up approvals for qualifying tokens.
The time necessary to list token-based exchange-traded funds may be shortened soon by the US Securities and Exchange Commission. The plan stipulates that issuers may bypass the standard 19b-4 rule-change procedure if a token satisfies specific listing requirements.
US SEC’s Proposed Framework Could Reduce Crypto ETF Launch Timelines by Months
The US SEC is collaborating with exchanges to establish a streamlined listing standard for crypto ETFs, as indicated by an X post by journalist Eleanor Terrett. Issuers could file an S-1 registration and wait only 75 days before listing, rather than traversing the conventional dual-track process.
This timeline can reduce regulatory friction and approval delays significantly. Currently, the US SEC is reviewing a crypto ETF that encompasses two 45-day periods following Rule 19b-4. This amounts to 90 days; however, it is only one component of the approval pipeline.
Frequently, issuers must wait for the final green light from the US SEC for 6 to 8 months when combined with S-1 filings. The objective of the new framework is to streamline this process by eliminating the 19b-4 step wholly and concentrating exclusively on the S-1 filing.
Assuming no additional objections are raised, the outcome could be a consistent 75-day review period. Even though the proposal is still in its infancy, it indicates a potential change in how the US SEC may approach token-based ETFs, with a preference for disclosure over exchange rule revisions.
Although the 75-day ETF pathway may provide predictability, the eligibility standards remain unclear
The 75-day pathway would provide issuers with a more precise and expedited timeline for the launch of ETFs. Nevertheless, the standards that tokens must satisfy to qualify under the new regulations are still uncertain.
There is speculation that minimum thresholds for liquidity, market capitalization, and trading volume may be necessary. This structure could be advantageous for exchanges and crypto companies well-positioned with mature digital assets, provided that it is accurate.
Additionally, the action may bring more predictability to an area where US SEC assessments frequently lack transparency. When contacted for comment, a spokesperson for the US Securities and Exchange Commission declined to provide additional information regarding the initiative.
However, this development suggests that the US SEC may adjust its position on crypto financial products. The agency could facilitate the integration of token ETFs into mainstream financial markets by establishing a consistent 75-day window.
If this development is authorized, it would benefit issuers such as Bitwise, which has recently experienced a delay in the SEC’s approval of its Ethereum ETF staking proposal.
