The SEC tells those who give it to pull the 19B-4s; ETFs can be approved as ‘absurdly fast’
The US Securities and Exchange Commission (SEC) asked those who provided the Crypto Exchange-Traded Fund (ETF) to remove their 19B-4 filing, which provides a way for a faster approval process after new policies have removed a major regulation of barriers, a person who is familiar with what said coindesk.
Earlier this month, the SEC signed off the standard listing criteria, allowing exchanges to list commodity-based products (ETP), including those tied to cryptocurrencies, without the need for a separate review for each. These changes are expected to lower regulation barriers for the launch of Crypto ETF areas.
Historically, those who provide will have to work with exchanges to submit 19B-4 filing-formal requests to change exchange-before an ETF is listed. But under the updated outline, that step is no longer necessary for certain products. Those who give now only need to file an S-1, the document detailed the structure and approach of the ETF, to receive the green light of the SEC.
“The SEC can move absurdly if they really want – as we have seen in the past. That means we can see approval for a few days. But there is no guarantee,” said Bloomberg Intelligence ETF analyst James Seyffart.
“They still don’t have BITW of Greenlit Bitwise to convert to an ETF I guess in the first place to file aspects that the SEC usually follows for the rest of the ETF industry. So they will probably allow these things to launch in the type of rolling waves or it may be a starting shotgun by the basis.
Over the past few months, asset managers have filed a growing list of crypto ETF measures covering coins such as , and . These proposals include both 19B-4 and S-1 filing, reflecting the two-part process required under old rules.
Removal of demand for 19B-4 forms can significantly accelerate approval. The 19B-4 route involved in exchanges, such as the NASDAQ or NYSE ARCA, who petitioned the SEC to change their own listing standards each time a new product was introduced-a process that often lasted the month.
Now, with the updated SEC bearing, the exchanges can list Crypto-based ETFs that fall within the common Commodity ETP category without having to seek a rule change each time. This places the burden of approval squarely on the S-1 filing, which remains under the direct evaluation of the SEC.
While it is unclear how fast the SEC is moving to the remaining S-1S, the change marks a move to the agency’s approach to the crypto-potential opening market for a wider range of digital property funds coming to the market with fewer regulation delays.
“Everything is not sure. Add to the prospect of a government shutdown and things can get a real win,” Seyffart said.
