- The SEC is working on a new set of directives for the negotiated funds on the stock market.
- Donald Trump has appointed Pro-Crypto regulators since its entry into office.
- Now, the new funds negotiated in exchange for crypto are ready to arrive on the market.
Prepare, Wall Street.
The American Commission for Securities and Exchange works on “generic registration standards” for products negotiated in exchange for crypto.
The new rules will allow new ETF Crypto to start automatically if they meet the basic requirements.
It is a calm but powerful regulatory change that has the potential to open the door to dozens of new funds and billions of admissions.
“The SEC is preparing to explode the large market,” the Bitwise Matt Hougan DSI wrote in a note on Monday to investors. “The dry adopting generic rating standards is an” to come “for the crypto, a signal that we have reached the big leagues.”
The FNB Bitcoin Spot have already proven the viability of the Crypto ETF concept. Led by BlackRock, the 11 suppliers have raised 1.3 million bitcoins worth around $ 149 billion. This represents around 6% of the total network offer.
Meanwhile, the ETFE Ethereum, who started slowly starting, have turned a corner with hundreds of millions that have flocking in recent weeks.
Their success has salivating investors on the next wave. Traders and asset managers hope that generic dry registration standards will accelerate the approval of new products related to XRP, Solana and other upper tokens.
One by one
SEC approvals take time, especially in crypto.
The issuers deposit petitions, prove that the markets are liquid and resistant to manipulation, then wait up to 240 days for a decision.
Crypto is an emerging market subject to the manipulation of major players. As such, the SEC had been cautious when approving new ETF products. The first Bitcoin ETF spot took over a decade to gain approval.
But generic registration standards would change all of this. Under the proposal, any Crypto ETF meeting the preset criteria would be lit in greenery in 75 days or less.
What would these criteria be?
“SEC still works through it and accepts contributions from industry,” wrote Hougan. But what we know for the moment is that the agency will need an existing term contract for the underlying assets merchant on a regulated US scholarship.
The history of ETF suggests that the impact will be dramatic.
When the SEC has introduced generic standards for ATTs and bonds in 2019, annual launches in the United States increased from an average of 117 to more than 370, according to Hougan.
The number of transmitters has also climbed because it has become the easy-up button to launch new funds.
Pro-Crypto pivot
Timing aligns with a wider pro-Crypto pivot in Washington.
The president of the SEC, Paul Atkins, has already said that “the time of the crypto has come”, committing to finish years of surveillance first of the application and to launch a deregular blitz known as the Crypto Project.
Atkins wants “clear and foreseeable rules of the road” and says that the agency will modernize securities laws to adapt to tokenization, jalitude and even all-in-one “super-applies” for digital assets.
However, there are other options for launching Crypto ETF without going through all the hoops.
Last week, an ETF of Dogecoin used a regulatory bypass solution nicknamed the 1940 investment company law to bypass some of the dry approval requirements.
From now on, the fund could start to negotiate immediately, although it is faced with solid marketing restrictions.
Analysts called it the beginning of the same era eTF.
Pedro Solimano is DL News“Correspondent of markets based in Buenos Aires. Do you have a tip? Send him an email to psolimano@dlnews.com.
