SEC Regulation Updates and Likely Cryptocurrency ETF Approvals
The SEC originally had deadlines set for various decisions: LTC on October 2, Solana on October 10, and XRP on October 17. However, things seem to be shifting. Eric Balknath from Bloomberg reports that analysts are expressing increased confidence regarding the approval of multiple spot Crypto ETFs. It seems that recent regulatory changes have taken away some of the previous timelines, making the launch of new funds feel sort of inevitable.
With new listing standards being adopted, the significance of the 19B-4 filing—and the deadlines that came with it—has been diminished. Balchunas explained that the SEC’s Corporation Finance division still needs to give the green light before any product can hit the market. Interestingly, the Solana publisher just submitted its fourth amendment to the S-1 filing, hinting that the anticipated regulations may soon be cleared. Balchunas even mentioned, “Baby can come anytime,” suggesting market players should be ready for launches that could happen without much notice.
The original October deadlines will now be influenced by this new framework, which allows regulators a bit more flexibility. Balchunas and James Seyffart estimated back in June that the approval odds for LTC, Solana, and XRP products were around 95%. They also predicted a 90% chance for final launches involving Dogecoin, ADA, DOT, HBAR, and Avax funds.
Earlier this month, the SEC quickly adopted popular ETF standards, providing “just good reasons” to speed up the implementation process. What’s notable is the review period, which used to extend up to 240 days, can now be wrapped up within just 75 days thanks to this streamlined approach.
Major exchanges like NASDAQ, NYSE ARCA, and CBOE BZX will now be able to list crypto funds that meet these new general requirements without needing to file new 19b-4 documents. To qualify, the assets need to have a track record of listing futures in a designated contract market for at least six months.
Interestingly, Coinbase Derivatives runs one of those markets and is offering futures contracts for several tokens, including Bitcoin, Ethereum, LTC, Bitcoin Cash, SOL, XRP, and ADA. Interestingly, a number of publishers have opted out of the 19B-4 filing process following these newly adopted standards.
Looking back at previous trends, there’s reason to believe we might see significant market expansion soon. Balchunas remarked that the last major implementation of ETF listing standards resulted in a tripling effect, forecasting that over 100 cryptocurrency funds could potentially launch within a year. It’s worth noting that Chairman Paul Atkins has taken a friendlier approach to digital asset regulations since stepping into his role in April.
