US Explores Easier Approval Process for Cryptocurrency ETFs
The United States Securities and Exchange Commission (SEC) is considering a streamlined approach for approving cryptocurrency exchange-traded funds (ETFs). This potential change could simplify the current process, making it easier for ETF issuers to bring their products to market. The move reflects the SEC’s evolving stance on crypto-related financial products.
How the New Process Could Work
Under the proposed changes, ETF issuers might bypass the traditional 19b-4 application filings. Instead, they would submit an SEC form S-1 and wait 75 days. If the SEC raises no objections, the ETF could list without further delays, reducing regulatory back-and-forth.
Implications for the Crypto Market
Approving altcoin ETFs could attract new capital into altcoin markets, potentially triggering a sustained rally, often referred to as an altseason. The SEC recently approved the first staked crypto ETF, the REX Shares Solana ETF (STAK), signaling a shift in regulatory approach.
Pending Decisions and Future Prospects
The SEC faces a backlog of pending ETF decisions, with many deadlines set for late 2025. Proposals include ETFs for Litecoin (LTC), Dogecoin (DOGE), Solana (SOL), and XRP (XRP), along with requests for staking features on Ether (ETH) funds. Bloomberg ETF analyst James Seyffart anticipates delays, with some final deadlines in October.
