The United States Stock Exchange and Securities Commission (SEC) has asked the Crity Crypto Exchange Traded (ETF) to withdraw their 19B-4 presentations, racing the way for a faster approval process after new rules eliminated a key regulatory obstacle, a person familiar with the matter told Coindesk.
Earlier this month, the SEC signed in generic listing standards, which allow exchanges to list products quoted in the stock market (ETP) based on basic products, including those linked to cryptocurrencies, without requiring a separate review for each. These changes are expected to drop regulatory obstacles to launch spot cryptographic ETF.
Historically, the Issuers had to work with exchanges to submit 19B-4 presentations (formal requests to amend the exchange rules, before an ETF could be listed. But under the updated frame, that step is no longer required for certain products. The emitters now only need to present an S-1, the document that details the structure and strategy of an ETF, to receive the green light of the sec.
“The SEC can move absurdly fast if you really want, as we have seen in the past. That is, we could see approvals in a matter of days. But there is no guarantee of that,” said Bloomberg Analyst Intelligence Etf James Seyffart.
“They have not yet caused Greenwwise Bitwise to become an ETF that I suppose has to do with the first to archive the aspect that the SEC usually follows for the rest of the ETF industry. Therefore, perhaps allow these things to be launched in types of rolling waves or that it could be a writing written to the underlying asset.”
In recent months, asset administrators have presented a growing list of spot cryptographic ETF proposals that cover coins such as , and . These proposals included the presentations of 19B-4 and S-1, which reflects the two-part process required under the old rules.
Eliminate the need for 19B-4 forms could significantly accelerate approval. Route 19B-4 involved exchanges, such as Nasdaq or Nyse Arca, asking the SEC to change its own listing standards every time a new product was introduced, a process that often had been for months.
Now, with the updated posture of the SEC, exchanges can list the ETFs based on cryptographic that are within the generic ETP category of basic products without having to look for a rule change every time. This places the approval load directly in presentation S-1, which remains under the direct review of the SEC.
While it is not clear how fast the SD will advance in the Outstanding S-1, the change marks a change in the agency’s approach to cryptography markets, which could open the door to a wider range of digital asset funds to reach the market with less regulatory delays.
“Everything is uncertain. Add the perspective of a government closure and things can become really unstable,” Seyffart said.
