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U.S. SEC to Create Easier Listing Standard for Crypto ETF Applications

If this occurs, ETF applicants will skip the Form 19b-4 process, S-1 filing, and 75-day wait before listing their ETFs on stock exchanges.

SEC Bitwise Nasdaq

The United States Securities and Exchange Commission (SEC) is currently discussing the establishment of a new listing standard for token-based exchange-traded funds (ETFs). If this new listing requirement is successful, ETF issuers can list their ETFs on stock exchanges sooner than usual.

Former FOX journalist Eleanor Terrett shared details about this development via an X tweet on Tuesday.

New ETF Listing Standard

ETFs are financial instruments that allow investors to gain indirect exposure to a range of assets. They include cryptocurrencies, securities, bonds, debts, gold, and futures contracts. Eligible financial companies issue these ETFs while stock exchanges enable the trading of these assets.

Before issuing a token-based ETF, such as cryptocurrencies, the issuing company must submit a Form 19-b, file an S-1 filing, and possibly wait for up to 75 days before the SEC may approve it. After undergoing this process, U.S. investment companies began offering spot Bitcoin ETFs and spot Ethereum ETFs to local investors.

The latest development suggests that the SEC intends to eliminate this rigorous procedure. If successful, it would save ETF issuers and the securities regulator time, paperwork, and the need for “back-and-forth on comments.”

Although little information is widely circulated, the regulatory agency’s new requirements are likely to take into consideration metrics such as market capitalization, traded volume, and liquidity.

What This Could Mean

Granted, the SEC has yet to issue an official comment on the restructuring of the ETF listing standard. Still, if it goes live, there will likely be more crypto-based ETFs approved to operate in the country.

There are currently various crypto-focused ETF applications in the pipeline. They are themed around cryptocurrencies like SOL, XRP, Aptos, BNB, and Sui. If the new listing standard goes live soon, these applicants may need to reapply for these financial products for quicker approval.

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Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with over four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, cybersecurity, and financial markets.