Key Takeaways
- The SEC is contemplating allowing crypto ETFs to launch without requiring a 19b-4 filing.
- Generic itemizing requirements might streamline the approval course of for token-based ETFs.
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Early-stage talks are underway between the US SEC and exchanges to set up a generic itemizing protocol for crypto exchange-traded funds, journalist Eleanor Terrett reported Tuesday, citing a spokesperson for the securities company.
Under the potential framework, a crypto ETF that meets sure pre-established standards may skip the normal 19b-4 rule-change filing course of. Instead, issuers would have the opportunity to file a regular S-1 registration assertion, wait the requisite 75-day evaluation interval, and launch the fund instantly on the change, assuming the token meets the brand new itemizing commonplace.
Such a system would characterize a serious shift in how the SEC handles crypto-related ETFs. Currently, crypto ETFs face a two-step approval course of that requires each an S-1 registration and a 19b-4 filing from the itemizing change.
Each step can contain extended back-and-forth between issuers, exchanges, and the SEC, typically delaying or derailing product launches.
While the main points are nonetheless being mentioned, the standards for qualifying tokens are speculated to embody market-based metrics, akin to market capitalization, each day buying and selling quantity, and liquidity throughout regulated markets.
The attainable shift within the regulatory framework comes as a number of asset managers await choices on their crypto ETF purposes from the SEC.
This is a creating story. Please come again for additional updates.
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