According to recent rumors, the SEC is considering a rapid procedure to streamline altcoin ETF applications. This new general listing standard will bypass the need for Form 19b-4 in cooperation with exchanges.
Traditionally, the committee has delayed ETF approvals as much as possible to ensure a unique assessment for each application. Many current proposals already have Form 19b-4, which may not help them, but it is a very positive signal for approval.
Is the US Changing Cryptocurrency ETF Evaluation Criteria?
Under new management, the SEC is facing a wave of new altcoin ETF applications. They are communicating with these proposals and clarifying positive intentions, but nothing has been actually approved.
However, cryptocurrency journalists in Congress now claim that the SEC plans to overhaul the entire procedure:
๐จSCOOP: The @SECGov is in the early stages of creating a generic listing standard for token-based ETFs in coordination with exchanges.
โ Eleanor Terrett (@EleanorTerrett) July 1, 2025
The thinking, I'm told, is that if a token meets the criteria, issuers could skip the 19b-4 process, file an S-1, wait 75 days, and theโฆ
This decision will bring dramatic changes to the ETF approval process in several ways. During the delays of recent months, analysts have pointed out that the procedure was structured to proceed slowly.
Currently, to list a token ETF, issuers must go through two approval stages:
- Form 19b-4 submission โ the stage where exchanges request rule changes to the SEC for ETF listing.
- S-1 registration submission โ the stage where issuers describe how the ETF will operate.
This process is slow, inconsistent, and requires many interactions.
According to rumors, under the new idea, if a token meets the criteria, 19b-4 will not be necessary. Issuers can simply submit an S-1 and wait 75 days for the ETF to be activated.
Additionally, this means fewer individual decisions by the SEC and increased standardization. Issuers will know in advance which tokens qualify.
The SEC typically tries to spend as much time as possible when considering ETF applications to consider all possible implications of approval.
Meaning of Pending Altcoin ETF Applications
If several altcoins meet the criteria, their associated ETF applications can proceed together and potentially be approved faster without a separate 19b-4 review process. Conversely, tokens not meeting the criteria could be immediately rejected.
This will bring structure and predictability to the ETF approval procedure instead of the current fragmented approach.
The committee currently has over 70 altcoin ETF applications pending. Some proposals submitted Form 19b-4 months ago; bypassing this stage may not help them now.
However, some of the currently submitted ETFs target relatively lesser-known altcoins. For instance, only one company has an AVAX ETF application. In such cases, the SEC could allow all issuers to quickly proceed with their own AVAX ETF.
If the SEC ultimately adopts this streamlined procedure, the time to launch ETFs will be significantly reduced, and the SEC's responsiveness will also be greatly improved. If an asset management firm succeeds with a unique ETF, other issuers could expand this new market within 75 days.
