SEC delays decisions on several crypto ETFs amid work on streamlined approval process

The Securities and Exchange Commission (SEC) delayed decisions connected 9 crypto exchange-traded money (ETF) applications connected Aug. 18.

The delays extended reappraisal periods for products related to integer assets, spanning Bitcoin, XRP, Litecoin, and Dogecoin. The crushed is apt the agency’s enactment to found a broad integer plus framework.

The postponements impact Truth’s spot Bitcoin and Ethereum ETF, CoinShares’ spot Litecoin ETF, and aggregate XRP ETF applications from 21Shares, CoinShares, Bitwise, Canary, and Grayscale. 

The SEC besides delayed 21Shares’ staking connection for its spot Ethereum ETF and Grayscale’s spot Dogecoin ETF application.

Except for Truth’s filing, the delayed products each person last deadlines for October.

Framework strategy is simply a priority

Bloomberg ETF analysts Eric Balchunas and James Seyffart suggested successful July that the delays reflect the SEC’s strategy to found support criteria earlier greenlighting idiosyncratic applications. 

Seyffart stated that this “might beryllium the SEC’s mode of stalling these things from becoming ETFs earlier they make a integer assets ETF framework.”

He added that the model would make “some benignant of generic listing modular for what integer assets are allowed successful an ETF wrapper and what criteria they’ll use.” 

The approach mentioned aims to replace the existent case-by-case reappraisal process, which requires each crypto ETF to unafraid a Commission bid earlier listing.

The SEC has been reportedly collaborating with US exchanges since July connected generic listing standards for token-based ETFs that would destruct idiosyncratic rule-change requests.

Generic approach

The projected strategy would let ETF sponsors to bypass the customary Form 19b-4 process erstwhile underlying tokens conscionable predetermined criteria.

Under the projected framework, sponsors would taxable registration statements connected Form S-1, observe modular 75-day reappraisal periods, and database products erstwhile waiting periods conclude. 

Market capitalization, on-exchange trading volume, and regular liquidity fertile among the metrics nether discussion.

Seyffart called the generic modular attack “very bully quality for the crypto ETF space,” arguing it would connection “clear rules of the road.” 

Balchunas described the conception arsenic “what everyone wants, what makes sense, and what we deliberation volition happen.”

As a result, the archetypal altcoin-related ETF approvals mightiness apt commencement lone successful October.

The station SEC delays decisions connected respective crypto ETFs amid enactment connected streamlined support process appeared archetypal connected CryptoSlate.