SEC Considers 75-Day Crypto ETF Listing Process

The U.S. Securities and Exchange Commission (SEC) is reportedly exploring a streamlined listing process for crypto exchange-traded funds (ETFs), which could significantly reduce the time it takes for these products to reach the market. The proposed system aims to bypass the lengthy 19b-4 application process, potentially cutting the listing timeline to just 75 days.

Currently, any ETF seeking to list on a U.S. exchange must undergo a 19b-4 rule change filing. This process involves multiple rounds of review and public comment, often taking months or even over a year for approval. The SEC’s proposed automation of this process could remove unnecessary red tape and standardize approval conditions, allowing qualifying ETFs to go live faster.

This regulatory shift is driven by growing interest in spot and altcoin ETFs, as well as pressure from investors, lawmakers, and major financial institutions to modernize the crypto ETF framework. Following the approval of multiple spot Bitcoin ETFs in early 2024, industry insiders have called for clearer and quicker pathways for new products. A faster system would benefit both large asset managers and smaller innovators, potentially opening the door to altcoin ETFs, DeFi baskets, or Ethereum layer-2 products much sooner than before.

The SEC’s consideration of this change reflects a broader trend of integrating crypto products more smoothly into traditional financial systems. By automating crypto ETF approvals, the SEC is indirectly acknowledging the increasing legitimacy and demand for the asset class. While the Commission has not yet made a formal announcement, internal discussions suggest that regulators may be adapting to the pace of innovation in the digital economy.

Reactions from the crypto and financial communities have been broadly positive, with analysts viewing this as a step toward regulatory clarity. This could reduce uncertainty and lower the cost of launching crypto ETFs. However, some experts have cautioned that oversimplification could pose risks, especially if asset quality or security standards are not enforced uniformly.

If implemented, this change could dramatically accelerate innovation in the crypto space, paving the way for a new generation of crypto investment products. These products would be more diverse, more accessible, and more rapidly deployed than ever before, sending a strong message that crypto is here to stay and that regulators are beginning to treat it accordingly.