SEC has traditionally postponed the ETF approval as much as possible to guarantee a unique evaluation for every request. However, some adjustments could be made to speed up the process. However, many current proposals already have a 19B-4 form, so this change should have no effect. On the other hand, there could be future applications.
ETF Crypto in the US may have a new rating standard
SEC has experienced a significant change in its management, which has an impact on the requirements of ETF associated with altcoins, with a massive wave of new requirements. She started discussing these proposals and clearly pointed out positive intentions. However, no ETF associated with a single main altcoin has been approved for now.
From now on, according to certain sources specialized in the legal issues of cryptocurrencies, SEC plans to completely revise its approval process.
This decision would mean a radical change in several ways. In fact, because as analysts notice it, the current process is designed to progress slowly.
Currently, issuers must go through the ETF in connection with the cryptocurrency to go through two capital phases of approval:
- File and Form 19b-4 – Where the Exchange asks Such to approve the rules for the ETF list.
- Send and Registration S-1 – Where the transmitter explains ETF operation.
This process is slow, disgusting and filled there and back between different parties.
According to the expected new idea, if the token meets the standard, Form 19B-4 would no longer be necessary. The ETF transmitter could simply submit the S-1 form, wait 75 days and get the final green light from a dry favorable start.
In this way, the reform would prefer standardization rather than a decision based on a dry with transmitter who will know in advance which tokens are eligible.
What does this mean for ETF requirements?
If several altcoins meet the standard, then the ETF requirements associated with altcoins could move forward and be approved faster without separate battles associated with 19B-4 form. On the contrary, chips that do not meet the criteria could be rejected from the beginning without the indecision for longer.
This would provide more predictability of the ETF approval process, rather than a fragmented approach as currently.
At present, SEC has more than 70 applications from ETF Crypto is still waiting for a decision. Some of these proposals could submit their 19B-4 forms a few months ago, they are still waiting for the regulatory body. But for these well -determined requests, a new process would not help them.
This simplified process could increase the reactivity of the Commission. If the company manages to attract attention with a single ETF, other transmitters could make this initiative in just 75 days.
Morality of History: Cryptocurrencies move so quickly that dry must speed up the speed.
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