SEC Explores New Fast-Track Process for Token-Based ETFs

The U.S. Securities and Exchange Commission (SEC) is in the early stages of developing a standardized listing framework for token-based exchange-traded funds (ETFs), according to a July 1 report by journalist Eleanor Terrett.

The potential system would allow eligible token-based ETFs to skip the traditional 19b-4 rule-change process. Instead, issuers would file a streamlined S-1 registration, observe a 75-day review period, and proceed directly to listing—provided the token meets specific criteria. This streamlined method could significantly reduce regulatory friction for both issuers and the SEC by eliminating prolonged comment periods and extensive paperwork.

Criteria Remains Unclear

While exact listing standards are not yet finalized, sources suggest that key metrics such as market capitalization, trading volume, and liquidity are under consideration. If implemented, the framework would mark a major shift in how token-backed ETF products come to market, offering a more predictable and efficient path to approval.

The SEC has not issued an official statement on the matter. When asked for comment, the agency declined through a spokesperson.

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Potential Catalyst for Broader Crypto Integration

If implemented, a standardized listing process for token-based ETFs could mark a pivotal moment for the cryptocurrency market. Today, issuers face lengthy and unpredictable approval timelines under the 19b-4 rule process, often stretching for months and requiring extensive engagement with regulators. A clear, criteria-driven path would remove much of that uncertainty. By allowing certain tokens to qualify for ETF listing through an S-1 registration and fixed review window, the SEC could unlock faster access to mainstream financial markets.

This would not only streamline issuer efforts but also bolster investor confidence, as more regulated investment vehicles become available. Additionally, ETFs serve as a bridge between traditional finance and crypto, offering exposure to digital assets without requiring direct custody. A surge in token-based ETF approvals could significantly expand crypto’s reach among institutional investors, retirement funds, and conservative asset managers—groups that have largely remained cautious due to regulatory ambiguity.

It would also pressure projects to improve transparency and liquidity in order to meet SEC benchmarks, raising the overall standard of the industry. In short, a generic listing framework could serve as a catalyst for both regulatory clarity and broader adoption, pushing crypto deeper into the financial mainstream.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.