US considers simplified path to market for crypto ETFs

The United States Securities and Exchange Commission (SEC) is reportedly exploring a simplified listing structure for crypto exchange-traded funds (ETFs) that would automate a significant portion of the approval process.

Under the proposed overhaul, ETF issuers could potentially sidestep 19b-4 application filings, the form entities submit to the SEC before listing a financial product on exchanges, according to crypto journalist Eleanor Terrett.

Instead, issuers would submit SEC form S-1, the initial listing registration filing, and wait for 75 days. If the SEC does not object to the application, the issuer would be free to list the ETF, reducing the back-and-forth communication between fund managers and the regulator.

Terrett says that details of the proposal, including the eligibility criteria for cryptocurrencies qualifying for the expedited process, are yet to be confirmed by the issuers and the regulatory body.

Crypto ETF approvals are a hot-button topic, as US-listed altcoin ETFs could attract fresh capital into altcoin markets, potentially triggering a sustained altcoin rally, or altseason.

SEC approves first crypto staking ETF as key decisions loom

The SEC has recently greenlit the country’s first staked crypto ETF. The regulator allowed the launch of the REX Shares Solana ETF (STAK), which includes staking rewards as part of its strategy.

The move comes as the SEC faces a backlog of pending decisions on several crypto-related ETFs, many with final deadlines set for the second half of 2025. Proposals in line for approval include ETFs holding Litecoin (LTC), Dogecoin (DOGE), Solana (SOL) and XRP (XRP), along with requests for staking features on Ether (ETH) funds. 

Bloomberg ETF analyst James Seyffart has said that delays were expected on crypto funds, with final deadlines for several applications set for October.