Cboe’s BZX Exchange and NYSE Arca have submitted proposals to the U.S. Securities and Exchange Commission (SEC) to eliminate the individual 19b-4 approval requirement for cryptocurrency exchange-traded funds (ETFs). This initiative targets regulatory efficiency by establishing a standardized listing framework, effectively bypassing the current case-by-case review process that can extend up to 240 days.
The exchanges seek amendments to Cboe’s Rule 14.11(e)(4) and NYSE Arca’s Rule 8.201-E, aligning crypto ETFs with traditional ETF approval protocols. This follows recent SEC decisions permitting in-kind redemptions for spot Bitcoin and Ethereum ETFs, signaling greater regulatory acceptance of crypto-focused investment vehicles.
Successful implementation would create a streamlined pathway for new crypto ETFs, reducing approval timelines while enhancing market stability. The proposal could boost investor confidence through procedural alignment with established ETF conventions, minimizing administrative hurdles for fund issuers.
These rule changes complement broader regulatory efforts, including the Congressional GENIUS Act and CLARITY Act, which seek clearer digital asset standards. The move represents a significant step toward normalizing cryptocurrency ETFs within traditional financial markets.