SEC Approves New Generic List Standards for Crypto ETPs
The US Securities and Exchange Commission (SEC) has taken a significant step towards streamlining the approval process for cryptocurrency-based exchange-traded products (ETPs). On September 17, the regulatory body approved a new set of generic list standards for raw material-based trust shares on prominent exchanges such as Nasdaq, CBOE, and the New York Stock Exchange. This move is expected to rationalize the approval process for replacement products, making it easier for new ETPs to enter the market.
Impact on Crypto ETPs
According to Eleanor Terret, a reporter from Fox Business, the new generic list standards do not automatically qualify all types of crypto ETPs. The threshold value requirements remain in place, which means that not all products will be eligible for immediate listing. Tushar Jain from Multicoin Capital notes that the standards do not apply to all kinds of crypto ETPs and that threshold requirements will still be a barrier for some products. Despite this, Jain expects the SEC to continue refining these standards.
The SEC’s decision to approve the proposed rules submitted by the stock exchanges is seen as a positive step towards reducing delays and providing more clarity for issuers. The regulatory authority has faced criticism in the past for its slow review process, which has hindered the growth of the crypto market. By adopting these new standards, the SEC aims to create a more efficient and streamlined process for listing new ETPs.
Future Implications
The approval of these new generic list standards is a significant development in the ongoing saga between the SEC and the exchange regarding crypto-based products. While this decision marks a step forward, experts caution that the “gates” for crypto ETPs are not yet completely open. Future SEC campaigns will determine how far these standards can be applied to various digital asset products. As the crypto market continues to evolve, it is likely that the SEC will refine and update these standards to ensure that they remain relevant and effective.
The SEC’s delayed decision on several Altcoin ETFs, with most submitting their final deadlines in October, has sparked rumors that this move is a way for the SEC to accelerate permits for crypto ETFs. As the regulatory landscape continues to shift, one thing is clear: the SEC is taking steps to create a more favorable environment for crypto-based products. For more information on this development, visit https://cryptoslate.com/sec-greenlights-new-generic-standards-to-expedite-crypto-etp-listings/
