SEC Considers Game-Changing Rule: Crypto ETFs Could Skip 19b-4 Filings
The SEC might just cut Wall Street's red tape—crypto ETFs could soon bypass the dreaded 19b-4 filing process. Here's why it matters.
No more paperwork purgatory? The SEC's potential rule change would let crypto ETFs launch faster, dodging a regulatory hurdle that's been slowing things down since, well, forever.
Faster launches, more products—just what the crypto market needs (or another way for institutions to cash in while retail holds the bag). Either way, the ETF floodgates are creaking open.
New Protocol Could Bypass 19b-4 Filings
The SEC has begun preliminary talks with stock exchanges about revising its crypto ETF listing requirements. Under this potential system, eligible crypto ETFs WOULD only require an S-1 registration form for approval. The SEC will review the S-1 over 75 days and then permit direct listing if all standards are met.
🚨SCOOP: The @SECGov is in the early stages of creating a generic listing standard for token-based ETFs in coordination with exchanges.
The thinking, I’m told, is that if a token meets the criteria, issuers could skip the 19b-4 process, file an S-1, wait 75 days, and the…
— Eleanor Terrett (@EleanorTerrett) July 1, 2025
This would remove the need for a dual approval process that currently involves both an S-1 and a 19b-4 filing. The existing system often results in delays due to extended back-and-forth negotiations. By streamlining it, the SEC may increase regulatory efficiency and product availability.
The new method would only apply to crypto ETFs that follow specific listing standards developed by the exchanges. Exchanges would still coordinate closely with the SEC to ensure transparency and compliance. The framework may significantly reduce the entry barriers for launching crypto ETFs in the U.S. market.
SEC Shows Increased Openness With Solana ETF Approval
The SEC recently approved the first solana spot ETF with staking capabilities, signaling a shift in regulatory approach. REX Shares will manage the fund, which includes built-in staking functions to generate yield. This approval demonstrates that the SEC is now more receptive to crypto ETFs with innovative features.
The decision marks a notable departure from the agency’s earlier stance, which limited crypto ETFs to more conservative structures. Market participants interpret this approval as a sign of greater regulatory flexibility. It could encourage new product designs within the bounds of federal securities law.
Staking-enabled crypto ETFs may attract investors seeking passive income opportunities tied to digital assets. They also open new possibilities for fund managers to compete through added features. As demand for regulated crypto exposure grows, more such ETF filings are expected.
Demand for Crypto ETFs Spurs Regulatory Shift
The SEC’s possible rule change comes amid rising market demand for crypto ETFs. Institutional and retail investors are increasingly turning to ETFs as a safer avenue for crypto exposure. A streamlined process would allow issuers to meet this demand more quickly.
If the filing burden is reduced, more asset managers may enter the crypto ETF space. That could expand product choices and promote healthy competition, allowing investors to access a broader and more diverse ETF market.
Crypto ETF continue to evolve as the SEC adapts to growing interest and market complexity. Ongoing guidance will shape the scope and structure of future offerings. The proposed framework may represent a significant step in aligning innovation with regulation.
