Many crypto ETFs are lingering in SEC files. Now, the Securities and Exchange Commission of the United States has announced new amendments following voting. The new guidelines relate to the processing timeline of applications filed by the companies seeking listing.
As per the official statement, the SEC states that the newly voted amendments are meant to streamline the application procedure. New rules will make it easier and quicker for the investment firms, especially crypto ETFs, to achieve listing-related compliance. Aiming to make listing application cost-effective, the amendments would usher in a much-needed change in the SEC corridors.
A glimmer of hope for crypto ETFs
Geared towards blockchain and crypto companies, these amendments were announced on 6th July. The expedited review process amendments have been adopted as per the Investment Company Act. Additionally, the body also bought in the new informal internal procedures to address miscellaneous applications by companies not covered under the new expedited review process. All these steps represent positive winds of change in the SEC.
The announcement further elaborates that the new amendments provide for an efficient process that boosts transparency. As per SEC, these new guidelines can deliver vital financial advantages to the crypto ETFs, besides other related parties.
The entire application process forms a crucial constituent of the regulatory framework. Jay Clayton, chairman of SEC, states that modern processes enhance efficiency and streamline the applications effectively. The new era tries to bring more transparency, lowers costs, and delivers optimum utilization of the SEC resources. The new amendments would be applied 270 days after they are published in the Federal Register.
Does this mean faster approval for crypto ETFs
Bitcoin exchange-traded funds and crypto ETFs are still stuck in regulatory hurdles. SEC has been facing flak for not approving crypto ETFs are delayed for want of documentation, legal clarity, and regulatory policies. The new amendments give a ray of hope to companies like Wisdom Tree, who are awaiting a response from the commission.
The new changes state that funds and ETFs falling under the exempted category can be reviewed under the expedited process. They can avail of the services by filing a third application. The company can expect to hear back within 45 days of filing the expedited review application.