U.S. SEC Proposes 75-Day Timeline for Crypto ETF Listings to Replace Lengthy Process
Key Highlights:
- The SEC is considering scrapping the 19b-4 rule-change process for crypto ETFs.
- A new 75-day review window could significantly speed up ETF listings.
- Token eligibility may be based on factors like liquidity, market cap, and trading volume.
The U.S. Securities and Exchange Commission (SEC) is exploring a new approach that could dramatically shorten the time required to list crypto-based exchange-traded funds (ETFs). Under the proposed plan, ETF issuers might bypass the traditional 19b-4 procedure if the underlying token meets certain predefined criteria.
According to journalist Eleanor Terrett, the SEC is collaborating with exchanges to create standardized listing rules for token-based ETFs. Instead of going through both the 19b-4 and S-1 filing processes, issuers could rely solely on the S-1 and potentially receive approval in just 75 days.
Currently, the SEC’s dual-track process—including two 45-day review windows under Rule 19b-4 and additional delays for S-1 filings—can take up to 6–8 months for final approval. The proposed framework would simplify this, focusing solely on disclosure through the S-1 filing, which could offer issuers a more predictable and streamlined pathway.
Though still in the early stages, the proposal signals a potential regulatory shift toward easing crypto ETF adoption. However, the specific criteria for token eligibility remain uncertain. Market watchers suggest that tokens may need to meet thresholds in liquidity, trading volume, and market capitalization.
If implemented, this new pathway could bring more clarity and speed to the ETF approval process, benefiting well-established digital asset firms and exchanges. It may also mark a more flexible stance from the SEC regarding crypto investment products.
This move could prove beneficial to firms like Bitwise, whose Ethereum staking ETF proposal recently experienced delays under the current system.
