The U.S. Securities and Exchange Commission (SEC) is evaluating a significant simplification to the approval process for crypto-related exchange-traded funds (ETFs).
The proposed change would replace the complex 19b-4 application process with the SEC Form S-1 for certain crypto ETF listings. This form includes a 75-day silent period during which the SEC must voice any objections.
This potential regulatory shift aims to expedite the launch of new investment vehicles, including ETFs focused on prominent altcoins like Litecoin (LTC), Dogecoin (DOGE), Solana (SOL), and XRP (XRP). Market participants anticipate such products could launch under the new regime by late next year if approved.
The move occurs against the backdrop of a growing backlog of crypto ETF applications. A notable recent approval includes the REX Shares Solana ETF (STAK), the first U.S.-listed crypto staking ETF.
Industry experts observe that while the procedural change could accelerate listing times, the SEC remains vigilant regarding the inherent risks associated with altcoin ETFs. Concerns specifically revolve around market volatility and liquidity challenges.
Overall, this proposed simplification signals the SEC’s evolving approach, seeking to embrace more innovative crypto financial products while maintaining its crucial mandate of regulatory oversight and investor protection.