The U.S. Securities and Exchange Commission (SEC) has started developing a universal listing standard to streamline the process of launching token-based ETFs on exchanges.
According to Fox Business reporter Eleanor Terrett, the SEC is collaborating with exchanges to create a simplified universal listing standard for cryptocurrency-based exchange-traded funds (ETFs). Under the proposed system, issuers whose token-based ETFs meet specified criteria could bypass the complex 19b-4 application process, instead directly filing an S-1 form, and could list the ETFs within just 75 days of applying.
The specific criteria for the new universal standard remain unclear, but industry insiders anticipate that market capitalization, trading volume, and liquidity will be among the critical considerations. Although the SEC has yet to comment officially, the proposed regulation has generated excitement within the crypto industry, as it could significantly accelerate the growth of the token-based ETF market.
