The US Securities and Exchange Commission (SEC) is proposing a streamlined framework that could significantly reduce the approval timeline for token-based exchange-traded funds (ETFs). Under the new plan, qualifying crypto ETFs could bypass the traditional 19b-4 rule-change process and list within 75 days after filing an S-1 registration.
US SEC’s Proposed Framework Could Cut Crypto ETF Launch Timelines by Months
According to journalist Eleanor Terrett, the SEC is collaborating with exchanges to develop a simplified listing standard for crypto ETFs. Key highlights of the proposal include:
- 75-Day Review Window: Issuers would only need to file an S-1 registration, eliminating the dual-track 19b-4 process.
- Reduced Regulatory Friction: Current ETF approvals often take 6–8 months due to extended SEC reviews and multiple filing stages.
- Focus on Disclosure: The SEC may prioritize transparent asset disclosures over exchange rule amendments.
This shift could accelerate the integration of crypto ETFs into mainstream finance, offering issuers a more predictable pathway to market.
75-Day ETF Pathway: Predictability vs. Unresolved Eligibility Criteria
While the proposed 75-day timeline provides clarity, the SEC has not yet defined the eligibility standards for tokens. Industry experts speculate that criteria may include:
- Minimum market capitalization thresholds.
- Liquidity and trading volume requirements.
- Adherence to custodial and security standards.
👉 Explore how leading exchanges are preparing for crypto ETF integrations
Bloomberg analysts James Seyffart and Eric Balchunas view the proposal as a positive step toward regulatory clarity. Balchunas noted:
"This is what the market needs—clear rules that allow top 50 coins to qualify for ETF wrappers."
FAQs: Crypto ETF Proposal
1. How does the new SEC proposal differ from current ETF approval processes?
The proposal removes the 19b-4 rule-change requirement, condensing the timeline from 6+ months to 75 days post-S-1 filing.
2. Which cryptocurrencies are likely to qualify under the new rules?
Tokens with high market caps, liquidity, and robust trading volumes (e.g., Bitcoin, Ethereum) are expected to meet SEC standards.
3. Could this proposal lead to faster approvals for pending Ethereum ETFs?
Yes. The streamlined process may benefit filings like Bitwise’s Ethereum ETF, currently delayed due to staking-related reviews.
4. What are the risks of faster ETF approvals?
Rushed approvals without stringent eligibility checks could expose investors to volatile or illiquid assets.
Market Reactions and Next Steps
- Analyst Optimism: Bloomberg raised approval odds for XRP, Litecoin, and Cardano ETFs to 95%.
- SEC’s Silence: The agency declined to comment, leaving specifics open to interpretation.
- Industry Impact: Exchanges and issuers with compliant tokens stand to gain the most.
👉 Stay updated on SEC decisions and crypto ETF developments
Key Takeaways:
- The SEC’s 75-day proposal prioritizes efficiency and transparency.
- Eligibility standards will determine which tokens benefit.
- A finalized framework could catapult crypto ETFs into mainstream portfolios in 2025.
Disclaimer: This article does not constitute financial advice. Conduct independent research before investing.
### **Keywords**:
Crypto ETFs, SEC proposal, 75-day approval, token-based ETFs, S-1 registration, cryptocurrency regulation, ETF eligibility, Bitcoin ETF
### **Anchor Texts**:
1. "Explore how leading exchanges are preparing for crypto ETF integrations"