SEC Explores Shortcut to Approve Altcoin ETFs Faster

According to a recent rumor, the SEC is considering an expedited process to streamline altcoin ETF applications. This new generic listing standard would work with exchanges, bypassing the need for a Form 19b-4.

Traditionally, the Commission has delayed approving an ETF as much as possible to ensure a unique assessment for each application. Many current proposals already have a Form 19b-4, so this change might not help them, but it’s an incredibly good sign for approval.

Crypto ETFs Might Have a New Assessment Standard in the US

The SEC is under new management, ushering in a tidal wave of new altcoin ETF applications. It’s been engaging with these proposals, clearly signaling positive intentions, yet the Commission hasn’t actually approved anything.

However, Congressional crypto reporters now claim that the SEC is planning to overhaul the process altogether:

This decision would mark a dramatic shift for the ETF approval process in several ways. Over the last few months of delays, analysts have noted that this process is structured to move slowly.

Right now, to list a token ETF, issuers have to go through two approval steps:

• File a 19b-4 form — where the exchange asks the SEC to approve rule changes to list the ETF.
• File an S-1 registration — where the issuer explains how the ETF works.

This process is slow, inconsistent, and full of back-and-forth.

Under the rumored new idea, if a token meets the standard, no 19b-4 is needed. The issuer just files the S-1, waits 75 days, and the ETF could go live.

Also, this means fewer case-by-case decisions for the SEC and more standardization. Issuers will know upfront which tokens qualify.

The SEC usually takes as much time as possible to consider ETF filings, trying to consider all the possible ramifications of their approval.

What It Means for Pending Altcoin ETF Applications

If multiple altcoins meet the standard, then ETF applications tied to those could move together and be approved faster, without separate 19b-4 battles. On the flip side, tokens that don’t meet the bar could be rejected outright.

This would bring structure and predictability to the ETF approval process, rather than the current fragmented approach.

The Commission currently has more than 70 altcoin ETF applications pending decision. Some of these proposals filed their Form 19b-4s several months ago; bypassing that step might not help them now.

However, plenty of lesser-known altcoin proposals are currently unique. Only one company has an AVAX ETF filing, after all. The SEC could enable every issuer to fast-track their own AVAX ETFs.

This streamlined process will increase the Commission’s responsiveness, if nothing else. If one firm catches lightning in a bottle with a unique ETF, other issuers could flesh out this new market in 75 days.