SEC Mulls Removing 19b-4 Requirement for Crypto ETFs

Highlights:

• SEC and U.S. exchanges plan a simpler listing path for crypto-based ETFs.
• Tokens may qualify if they meet key metrics like market cap and liquidity.
• Bloomberg analysts said clear standards would offer guidance and increase approval chances for crypto ETFs.

The United States Securities and Exchange Commission (SEC) is reportedly working with U.S. exchanges to create a generic listing protocol for crypto exchange-traded funds (ETFs), Fox News’ Eleanor Terret reported on July 1, citing a spokesperson for the securities agency. Under the new plan, ETF sponsors skip the usual Form 19b-4 process if the token meets certain fixed standards. This change would speed up approval times and make it easier for asset managers to launch crypto ETFs.

SEC Considers Fast-Track Path for Crypto ETFs Amid Industry Pressure

Instead of going through the usual process, issuers would submit a Form S-1 to the SEC and wait 75 days. If the SEC does not raise any objections during this period, the issuer would be allowed to list the ETF. Industry experts are watching to see which tokens will qualify for the fast-track process. 

Although the final rules are still under discussion, it is expected that tokens will need to meet certain market-based standards to qualify. These may include metrics like overall market capitalization, daily trading volume, and liquidity on regulated exchanges.

🚨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 new system would mark a big change in how the SEC handles crypto ETFs. Right now, these funds must go through two steps—submitting both an S-1 registration and a 19b-4 filing by the exchange. Each step often leads to long discussions between issuers, exchanges, and the SEC, which can delay or stop ETF launches. The possible change in rules comes as many asset managers wait for SEC decisions on their crypto ETF applications.

Bloomberg Analysts See 95% ETF Approval Odds for Top Coins in 2025

Bloomberg ETF analyst James Seyffart said a clear standard would be great for crypto ETFs. He said it would give clear rules and much-needed guidance for the industry.

This would be very good news for the crypto ETF space. Will provide clear rules of the road and give us the clarity that everyone has been asking for

Some sort of framework also aligns with what @EricBalchunas and I have been writing about in our research for @BBGIntelligence https://t.co/j6eL45LoxX

— James Seyffart (@JSeyff) July 1, 2025

Eric Balchunas, another Bloomberg analyst, agreed. He said this idea is what people want, makes sense, and is likely to happen. That’s why they see a 95% chance of approval for top coins. He added that the key issue is what the final rules will be, but expects they’ll be easy enough for most of the top 50 coins to qualify. Both analysts also said that a common rule could allow for multi-coin ETFs and staking-based funds, like the planned Solana ETF.

Yes, this is what everyone wants, what makes sense and what we think will happen and why we so bullish (95% on most of the coins) approval. Q is what will the standards be. We think they'll likely be loose enough where the vast majority of Top 50 coins would be ok to be ETF-ized. https://t.co/1AUZOmpe1O

— Eric Balchunas (@EricBalchunas) July 1, 2025

Bloomberg analysts believe multi-coin and index ETFs could roll out later this year. They estimate a 90% approval chance for ETFs tied to Dogecoin, Cardano, Polkadot, and Avalanche. Soon after their forecast, the SEC approved Grayscale’s crypto basket fund for ETF conversion. They also raised the chance of Solana, Litecoin, and XRP ETFs to 95% by 2025, due to rising demand and a friendlier U.S. approach to crypto.