The American Securities and Exchange (SEC) commission asked the issuers of the negotiated fund in exchange for crypto (ETF) to withdraw their 19B-4 files, paving the way for a faster approval process after the new rules have deleted a key regulatory obstacle, said a familiar person with the Coindesk case.
Earlier this month, the SEC has signed generic rating standards, which allow exchanges to list products (FTE) based on basic products (FTE), including those related to cryptocurrencies, without requiring distinct exams for everyone. These changes should reduce regulatory obstacles for the launch of FNB Crypto Spot.
Historically, the issuers had to work with exchanges to submit 19B -4 deposits – official requests for modifying exchange rules – before an ETF could be listed. But as part of the updated framework, this step is no longer required for certain products. The issuers now only need to deposit an S-1, the document which details the structure and strategy of an ETF, to receive the green light from the dry.
“The dry can move absurdly fast if it really wants it – as we have seen in the past. This means that we could see the approvals in a few days. But there is no guarantee of this,” said Bloomberg Intelligence Etf analyst James Seyffart.
“They still do not have the Bitw of Greenlit Bitwise to convert to an ETF which, I suppose, has to do with the first to lay down the aspect that the dry generally follows for the rest of the FNB industry. So maybe they will allow these things to launch in kinds of rolling waves or it could be a phone call to start with an underlying asset.”
In recent months, asset managers have submitted a growing list of the proposals of FNB Crypto Spot covering parts like ,, And . These proposals included both 19b-4 and S-1, reflecting the process in two parts required under the old rules.
Deleting the need for 19B-4 forms could considerably accelerate approvals. The 19B -4 route involved exchanges, such as the Nasdaq or the Arca NYSE, asked the dry to modify their own registration standards each time a new product was introduced – a process that has often taken for months.
From now on, with the update position of the dry, the exchanges can list the FNB based on cryptography which fall under the generic ETP category of basic products without having to request a change of rule each time. This squarely places the burden of approval on the S-1 deposit, which remains under direct examination of the dry.
Although it is not clear at what speed the dry moves on the S -1 in progress, the change marks a change in the agency’s approach on the cryptographic markets – potentially opening the door to a wider range of digital asset funds to arrive on the market with less regulatory delays.
“Everything is uncertain. Add the prospect of a government closure and things can really become bank,” said Seyffart.
