The U.S. Securities and Exchange Commission (SEC) is preparing significant changes to the rules governing cryptocurrency exchange-traded funds (ETFs), which could expedite their approval process.
Changes in Crypto ETF Rules
The SEC is working on a new general directive that will simplify the listing process for all crypto ETFs, eliminating the need for exchanges to submit individual requests. This could reduce the waiting period for new product approvals from 240 days to 75.
SEC's New Directive and Its Implications
The released document marks a shift in the SEC's approach, now focusing on standardizing the inclusion of crypto assets in investment products. Sui Chung, CEO of CF Benchmarks, emphasized that the SEC is creating a system for including various crypto assets into investment funds. "The SEC is moving forward on creating a framework for how they'd like to see all these crypto assets included in investment funds," he noted.
Market Response and New Product Preparations
Asset managers are already preparing to launch new crypto ETFs, adapting to current restrictions. For example, REX Financial and Osprey Funds recently introduced a new Solana-linked ETF. Greg King, CEO of REX Financial, confirmed plans to pursue a spot Solana product once the new SEC framework is complete.
The proposed changes by the SEC in the regulation of crypto ETFs may significantly alter the market and facilitate further integration of crypto assets into traditional investment products.
