U.S. Exchanges Urge SEC to Accelerate Regulations for Crypto ETF Listings
Cboe BZX and NYSE Arca have grown impatient. The two exchanges have lodged proposals asking the SEC to simplify and expedite the listing of crypto ETFs. If the rule adjustment is sanctioned, they wouldn’t need to file a distinct request for each product. Instead, a common framework would streamline the listing procedure for ETFs that fulfill specified criteria. The SEC’s process for approving crypto ETFs has traditionally been sluggish, often lingering for months with minimal guidance.
How the Proposed Rule Would Operate
Currently, each new crypto ETF is subjected to the same lengthy procedure. The trading protocol submits a 19b-4 form, the SEC spends months reviewing it, and often a clear verdict doesn’t emerge until the conclusion of the 240-day timeframe. The new proposal eliminates that cycle for funds falling within a predetermined category, such as asset type, liquidity, and whether proper crypto market oversight is in place. This approach aims to treat crypto ETFs similarly to gold or other commodity funds, which already experience a more expedited pathway to crypto market.
Increased Funds, Reduced Waiting Time
Should this proposal be enacted, it could pave the way for a wave of ETFs focusing on altcoins such as Solana, Avalanche, or even specially curated crypto baskets. Provided that issuers adhere to the established guidelines, they could initiate launches without enduring the SEC’s lengthy scrutiny each time. This translates to less waiting, greater diversity, and a swifter transition from idea to trading.
DISCOVER: 9+ Best High-Risk, High-Reward Crypto to Buy in July 2025
Adapting to the Overall System
This appeal is not without precedent. The SEC has recently permitted in-kind redemptions for BTC and ETH ETFs, meaning traders can settle in digital currency rather than cash. This modification represents a move toward enabling these funds to function more like conventional financial products. Now, the exchanges are advocating for the same rationale to be applied to listings. If the backend is evolving, they contend, so should the front-end processes.
Fears of a Two-Tiered System
Not everyone is pleased. Critics argue that this could favor BTC and Ethereum, sidelining other projects. Concerns exist that standardized listings may inhibit innovation or pose hurdles for smaller tokens that don’t fulfill the same available volume or infrastructure standards. Some legal analysts believe the process must remain adaptable enough to encompass a broader range of assets, rather than just the usual high-profile ones.
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025
Future Steps
The SEC is not required to act swiftly. It has up to 240 days to provide a response, although it could also decline the proposal or return it for amendments. Historically, the agency has been deliberate, especially concerning crypto matters. However, there is now speculation about a faster turnaround, potentially within 75 days, if the submissions conform to a familiar structure.
Motivations Behind the Initiative
Exchanges are vying to attract ETF issuers. No one wants to be the exchange that lingers too long or complicates the process. A quicker system would enable them to capture more business from asset managers eager to launch crypto funds without enduring prolonged uncertainty. It’s also a strategy to keep pace with global markets that are already progressing more rapidly.
The Broader Context
This is not merely a matter of administrative processes. It signifies yet another advancement in integrating crypto into the financial ecosystem. The SEC has been increasingly open to treating digital assets more similarly to traditional investments. This trend is already visible in the variety of crypto ETFs currently active, including some that follow newer coins and even those inspired by memes.
Significance of This Development
If the SEC’s crypto ETF rule receives approval, investors might soon experience more diversity and quicker access to newly launched funds. Fund issuers would enjoy a more direct path to trading market, investors would gain additional options, and the entire ETF landscape could start to resemble the traditional finance sector. It’s a test of how prepared the U.S. is to embrace crypto on a larger stage.
DISCOVER: 20+ Next Crypto to Explode in 2025
Join The 99Bitcoins Announcement Discord Here For The Latest Crypto market Updates
Essential Points
- Cboe BZX and NYSE Arca are seeking a quicker route for listing crypto ETFs via a standardized approval process.
- The new compliance would allow qualifying funds to bypass the lengthy 19b-4 review, reducing wait times from 240 days to potentially as low as 75.
- The initiative could enable the creation of altcoin ETFs like Solana and Avalanche, beyond just Bitcoin and ETH.
- Critics are concerned this could marginalize smaller tokens or establish a two-tiered ETF structure based on market fluidity.
- If approved, the rule might transform how crypto ETFs are introduced and advance U.S. efforts toward mainstream crypto integration.
The post U.S. Exchanges Push SEC to Speed Up Crypto ETF Listing Rules appeared first on 99Bitcoins.
