SEC eyes single-track crypto ETF listings in quiet talks with exchanges

A little-known SEC consultation could scrap months of bureaucratic delays for crypto ETFs. Instead of dual filings, issuers may soon need just an S-1 and patience, setting the stage for an unprecedented wave of listings.

FOX Business reporter Eleanor Terrett has uncovered early discussions between SEC officials and major exchanges about creating standardized listing rules for crypto ETFs.

The potential overhaul could fundamentally change how these funds reach the market. Instead of navigating the bureaucratic maze of 19b-4 approvals, issuers might only need to file an S-1 registration and endure a 75-day waiting period.

What’s catching industry observers’ attention is what exactly will qualify a token for this fast-track process. While SEC officials remain tight-lipped, multiple sources familiar with the talks suggest the criteria will likely focus on hard metrics like market cap, trading volume, and liquidity thresholds.

These requirements could make or break many proposed crypto ETFs before they even reach the starting line. Per Terrett, the securities watchdog declined to comment when pressed for details.

A regulatory shift born of necessity?

For an agency often criticized for its incrementalism, the SEC’s apparent willingness to consider a standardized path for token ETF listings marks a rare concession to operational reality.

The move follows years of mounting pressure from asset managers, lawmakers, and even courts questioning the agency’s inconsistent treatment of crypto products, causing clogged filing pipelines and extensive back-and-forth with issuers.

The current dual-filing system, which requires both an S-1 registration and a 19b-4 exchange rule change, has long been criticized as redundant, often adding months of unnecessary delays. The Grayscale Bitcoin Trust’s landmark legal victory last summer, which forced the SEC to reconsider its spot Bitcoin ETF denials, exposed the regulatory arbitrage at play.

Now, with Bitcoin and Ethereum ETFs already trading, the agency appears to be preemptively structuring a clearer path for the next wave of funds, before another courtroom showdown forces its hand.

This effort comes as crypto ETFs have evolved from niche products to mainstream contenders, with global assets under management surpassing $90 billion this year. But the SEC’s case-by-case approvals, often mired in repetitive disclosures and last-minute revisions, have struggled to keep pace.

The proposed single-track system suggests the agency is acknowledging an unavoidable reality: crypto ETFs are here to stay, and manual vetting of every filing is unsustainable.

By offloading initial eligibility checks to exchanges, regulators could focus on systemic risks rather than paperwork. The move mirrors the SEC’s 2020 “ETF Rule” modernization, which simplified traditional ETF launches, but with a critical twist. Unlike conventional funds, crypto ETFs face unique custody, valuation, and market manipulation risks, meaning any new standards will need to address these concerns head-on.

If implemented, the changes could trigger a gold rush among mid-tier asset managers previously deterred by the cost and complexity of the 19b-4 process. However, the devil lies in the undisclosed listing criteria.