SEC Considers Faster 75-Day Timeline for Crypto ET

• The SEC may remove the 19b-4 rule-change process to cut crypto ETF approval time to 75 days.
• Eligibility rules for tokens under the faster path remain undefined but could rely on trading metrics.
• The proposal, if adopted, may offer crypto ETF issuers a clearer and faster path to market.

The United States Securities and Exchange Commission is reportedly working with stock exchanges to develop a simplified listing standard for token-based exchange-traded funds. The proposal could remove the need for the traditional 19b-4 rule-change process, which currently adds months to ETF approvals. If adopted, issuers would be allowed to file only an S-1 registration and proceed to listing within 75 days, significantly reducing the timeline.

A present, crypto ETF approvals often involve dual-track filings. Issuers must submit an S-1 form and also seek a rule change under Rule 19b-4. Each stage involves review periods of 45 days or more. This method can result in delays of six to eight months, depending on SEC feedback and objections. Removing the 19b-4 process could allow issuers to bypass one of the key hurdles