SEC Eyes Automated Listing Process to Speed Up Crypto ETF Approvals

In a potential game-changer for digital asset markets, the U.S. Securities and Exchange Commission (SEC) is reportedly considering a simplified listing process for crypto exchange-traded funds (ETFs), according to Cointelegraph. The new system could allow ETF issuers to bypass the time-consuming 19b-4 application process, slashing the listing timeline to just 75 days.

This move comes amid growing interest in spot and altcoin ETFs and could dramatically reshape how fast these products reach the market.

What Is the 19b-4 Process, And Why It Slows Things Down?

Currently, any ETF that wants to list on a U.S. exchange must submit a 19b-4 rule change filing. This process requires multiple rounds of review and public comment. It often takes months, or even over a year, for approval.

The SEC’s reported proposal would automate large portions of this process. It could allow qualifying ETFs to go live faster by removing unnecessary red tape and standardizing approval conditions.

For the crypto industry, this would be a significant regulatory shift.

Why the SEC Might Be Ready for This Change

The SEC has faced growing pressure from investors, lawmakers, and major financial institutions to modernize its crypto ETF framework. Following the approval of multiple spot Bitcoin ETFs in early 2024, industry insiders have called for clearer and quicker pathways for new products.

A faster system would benefit both large asset managers and smaller innovators trying to bring niche crypto ETFs to market. The new structure would reportedly allow some ETFs to be automatically approved within 75 days, provided they meet certain base criteria.

This could open the door to altcoin ETFs, DeFi baskets, or Ethereum layer-2 products, much sooner than before.

A Push Toward Normalizing Crypto Within Traditional Finance

The SEC’s reconsideration of its ETF process reflects a larger trend, integrating crypto products more smoothly into traditional financial systems. By automating crypto ETF approvals, the SEC is indirectly acknowledging the asset class’s increasing legitimacy and demand.

While the Commission has not yet made a formal announcement, the internal discussions signal that regulators may finally be adapting to the pace of innovation in the digital economy.

Industry Reactions: Cautious Optimism

Reactions from the crypto and financial communities have been broadly positive. Analysts see this as a step toward regulatory clarity, which could reduce uncertainty and lower the cost of launching crypto ETFs.

“This could change everything,” said one ETF strategist in New York. “It puts crypto on the same footing as traditional assets in terms of process speed.”

However, some experts have warned that oversimplification could pose risks, especially if asset quality or security standards are not enforced uniformly.

Final Thoughts

The SEC’s potential shift toward a simplified crypto ETF listing process could dramatically accelerate innovation in the space. It also sends a strong message that crypto is here to stay, and regulators are beginning to treat it accordingly.

If implemented, this change may pave the way for a new generation of crypto investment products, more diverse, more accessible, and more rapidly deployed than ever before.