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SEC Urges Immediate Withdrawal of LTC, XRP, SOL, ADA, DOGE ETF Filings – Why?

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The U.S. Securities and Exchange Commission (SEC) has instructed issuers of proposed spot exchange-traded funds (ETFs) for Litecoin, XRP, Solana, Cardano, and Dogecoin to withdraw their pending Form 19b-4 filings.

The transfer follows the company’s September 18 approval of generic itemizing requirements, which streamline the method for bringing new cryptocurrency ETFs to market.

The instruction doesn’t characterize a setback for issuers. Instead, it displays a procedural shift that eliminates the necessity for case-by-case change rule adjustments for every token.

Crypto ETF Market Expands Beyond Bitcoin and Ethereum Under New Rules

Under the brand new framework, exchanges reminiscent of Nasdaq, Cboe BZX, and NYSE Arca can list crypto ETFs under generic rules, supplied the merchandise meet predefined standards.

Issuers now advance immediately with S-1 registration statements, the final step earlier than an ETF can launch.

Withdrawals of the now-unnecessary 19b-4 filings are anticipated to start this week, with a number of October deadlines approaching for current functions.

At least 16 proposals overlaying tokens past Bitcoin and Ethereum stay beneath SEC assessment. The shift is a component of what regulators describe as a maturing framework for cryptocurrency monetary merchandise.

The company’s approval of generic requirements was designed to supply a secure platform for digital asset ETFs whereas together with exemptions that encourage on-chain capital market growth.

SEC Chair Paul Atkins mentioned the brand new framework reduces obstacles whereas sustaining investor safety, noting that the foundations help innovation with out compromising oversight.

For issuers together with Grayscale, 21Shares, and VanEck, the change is necessary. Previously, every product required two separate approvals: one from the change by way of a 19b-4 submitting and one other from the asset supervisor by way of an S-1.

The twin course of typically stretched 9 months or extra. With generic requirements in place, timelines can shrink to as few as 75 days.

The SEC has already utilized the brand new framework in follow. On September 18, the regulator approved Grayscale’s Digital Large Cap Fund (GDLC), the primary multi-crypto exchange-traded product to checklist beneath the streamlined system.

GDLC presents publicity to Bitcoin, Ether, XRP, Solana, and Cardano, and at present manages over $915 million in property. Its approval marked a turning level for multi-asset crypto merchandise within the U.S. market.

The change comes amid a flood of new filings. On September 17, issuers submitted at least five fresh ETF proposals, starting from a Bitwise spot Avalanche ETF to Tuttle’s “Income Blast” funds overlaying Bonk, Litecoin, and Sui.

ETF Institute co-founder Nate Geraci mentioned the functions display how rapidly the market is increasing past conventional Bitcoin and Ethereum merchandise.

SEC Faces Wave of Crypto ETF Deadlines as Solana, XRP Filings Near Key Dates

More than 92 crypto ETF applications are now pending earlier than the SEC.

Deadlines for a number of of these filings fall in October and November. Franklin Templeton’s Solana and XRP ETF applications face a November 14 determination after the SEC used its most 60-day extension authority earlier this month.

BlackRock’s modification so as to add staking to its iShares Ethereum Trust is now due October 30. Grayscale’s Hedera Trust determination is scheduled for November 12, whereas proposals tied to Dogecoin, Litecoin, and different altcoins are scattered throughout the identical timeframe.

Bloomberg analysts venture over a 95% likelihood of approval for Solana and XRP ETFs earlier than year-end, regardless of repeated extensions. Prediction markets replicate related optimism, with Polymarket odds on a Solana ETF approval currently at 99%.

Analysts argue that the brand new requirements make the timeline much less depending on formal deadlines, for the reason that SEC can approve S-1 filings at any time if merchandise meet eligibility necessities.

The SEC can also be coordinating with the Commodity Futures Trading Commission (CFTC) on broader digital asset regulation.

A joint roundtable is deliberate to align approaches throughout businesses as half of Chair Atkins’ “Project Crypto” initiative, launched in July to modernize securities guidelines for the digital period.

For buyers and issuers, the withdrawal of 19b-4 filings exhibits how the regulatory setting is shifting from case-by-case hurdles to standardized procedures.

While many merchandise nonetheless await assessment, the procedural streamlining exhibits quicker paths to marketplace for a variety of cryptocurrency ETFs.

The put up SEC Urges Immediate Withdrawal of LTC, XRP, SOL, ADA, DOGE ETF Filings – Why? appeared first on Cryptonews.

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