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Highlights
- US SEC may eliminate 19b-4 step to streamline crypto ETF approvals.
- New 75-day pathway could fast-track token-based ETF listings and filings.
- Token eligibility standards may include liquidity, market cap, and trading volume thresholds.
The US SEC may soon reduce the time required to list token-based exchange-traded funds. Under the plan, if a token meets certain listing requirements, issuers could skip the usual 19b-4 rule-change process.
US SEC’s Proposed Framework Could Cut Crypto ETF Launch Timelines by Months
According to an X post from journalist Eleanor Terrett, the US SEC is working with exchanges to build a streamlined listing standard for crypto ETFs. Instead of navigating the traditional dual-track process, issuers could file an S-1 registration and wait just 75 days before listing.
This timeline could sharply reduce approval delays and regulatory friction. Currently, the US SEC’s review of a crypto ETF includes two 45-day windows under Rule 19b-4. That adds up to 90 days, but it’s only one part of the approval pipeline.
Combined with S-1 filings, issuers often wait 6 to 8 months for final green light from the US SEC. The new framework aims to simplify this process by removing the 19b-4 step entirely and focusing solely on the S-1 filing.
Assuming no further objections arise, the result could be a consistent 75-day review period. Though the proposal is still in early stages, it suggests a shift in how the US SEC may treat token-based ETFs—prioritizing disclosure over exchange rule updates.
75-Day ETF Pathway May Offer Predictability, But Eligibility Standards Remain Unclear
The 75-day pathway would give issuers a clearer and faster timeline for launching ETFs. However, what remains uncertain are the standards that tokens must meet to qualify under the new rules.
Some speculate that minimum thresholds for market capitalization, liquidity, and trading volume may be required. If true, this structure could benefit exchanges and crypto companies that are well-positioned with mature digital assets.
The move could also bring greater predictability to a space where US SEC reviews have often lacked transparency. When contacted for comment, a US SEC spokesperson declined to provide further details on the initiative.
Still, this development hints that the US SEC may be softening its stance on crypto financial products. By creating a consistent 75-day window, the agency could help accelerate the integration of token ETFs into mainstream financial markets.
If approved, this development would be good news for issuers like Bitwise, whose Ethereum ETF staking proposal was recently delayed by the SEC.
Bloomberg Analysts React
In an X post, Bloomberg analyst James Seyffart stated that the SEC proposal would be “very good news” for the crypto ETF space. He further remarked that this will provide clear rules of the road and give the clarity that market participants are seeking.
Bloomberg analyst Eric Balchunas also agreed that this SEC move is what everyone wants and what makes sense. He also opined that he and his colleagues believe this is what will happen and is why they are bullish on approval this year. As CoinGape reported, these Bloomberg analysts have raised their odds of approval for Litecoin, XRP, and Cardano ETFs to 95%.
Balchunas also mentioned that the question is what standards the SEC will adopt for approval. He and Seyffart think that the standards will likely be loose enough where the vast majority of the top 50 coins would be approved for an ETF wrapper.
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