The U.S. Securities and Exchange Commission (SEC) is working on a new framework that could simplify the approval process for cryptocurrency-related exchange-traded funds (ETFs). Currently, exchanges wishing to launch a crypto-ETF are required to submit Form 19b-4, which initiates a lengthy review period that can last up to 240 days. This process is often criticized for its complexity and delays that hinder innovation in the digital asset market.
The new framework, reportedly, aims to reduce review times and simplify submission requirements. The SEC seeks to create a more transparent and predictable mechanism that will facilitate exchanges launching ETFs based on Bitcoin, Ethereum, and other cryptocurrencies. This could help attract institutional investors looking for regulated instruments to invest in digital assets.
Experts believe that simplifying the process could revitalize the crypto-ETF market by increasing investor confidence and promoting broader cryptocurrency adoption. However, the SEC continues to emphasize investor protection, which remains a key priority in developing new rules. Details of the new framework are expected to be released soon, which could be an important step towards integrating cryptocurrencies into traditional financial markets.