The U.S. Securities and Exchange Commission (SEC) is reportedly reviewing a new structure that would significantly simplify the approval process for cryptocurrency exchange-traded funds (ETFs). If the proposed changes are implemented, cryptocurrency ETF issuers could skip some pre-approval procedures, potentially lowering market entry barriers.
According to cryptocurrency journalist Eleanor Terrett, the SEC is exploring a plan where ETF issuers would submit S-1 forms instead of the existing 19b-4 documents, with automatic approval if the SEC does not object within 75 days. While 19b-4 is a regulatory pathway that must be followed before financial products are formally listed on exchanges, skipping this process could reduce unproductive communication between fund managers and regulatory authorities.
However, the scope of cryptocurrencies eligible for this streamlined procedure and specific qualification requirements have not yet been finalized. Discussions are ongoing between the SEC and fund issuers, with the market introduction method expected to become clearer in the coming months.
This development is significant as the U.S. cryptocurrency ETF market appears to be expanding. With the potential listing of ETFs based on altcoins like BTC, ETH, SOL, and XRP, institutional investment funds could flow into a more diverse range of assets. This could potentially lead to an 'altcoin season' with broader market momentum.
While the SEC's simplification of ETF evaluation criteria could signal a more crypto-friendly policy approach, careful market review is also necessary. Given the rapidly changing regulatory environment surrounding ETFs, the industry needs to carefully analyze the new procedures and develop corresponding strategies.
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