SEC's Move to 'Facilitate' Altcoin ETFs: Listing Process to Speed Up!

The U.S. Securities and Exchange Commission (SEC) has started working on developing a universal listing standard that will enable crypto-based ETFs to be listed on exchanges more quickly.

According to Fox Business reporter Eleanor Terrett, the SEC is collaborating with exchanges to create a new listing standard for cryptocurrency-based exchange-traded funds (ETFs). This effort aims to simplify the currently complex application processes for token-based ETFs.

According to the system the SEC is working on, a token ETF application that meets the established criteria will be able to bypass the complex 19b-4 process currently in use and apply directly using the S-1 form. With this new regulation, ETF issuers will be able to list token-based ETFs directly on exchanges after waiting only 75 days following their application.

What will the listing criteria be?

The criteria for this universal standard to be created by the SEC have not yet been clarified. However, according to industry sources, it is anticipated that the SEC will particularly consider fundamental elements such as market capitalization, trading volume, and liquidity.

While the SEC has not yet commented on the new regulation, it is reported to create excitement in the cryptocurrency market, particularly providing significant ease to issuing companies in their ETF applications. It is believed that with the implementation of this regulation in the crypto sector, the token-based ETF market could gain serious momentum.