According to the report, the initiative would enable an ETF sponsor to bypass the customary Form 19b-4 process when the underlying token meets predetermined criteria.
The sponsor would instead submit a registration statement on Form S-1, observe the standard 75-day review period, and list the product once the waiting period ends.
People familiar with the talks said that market capitalization, on-exchange trading volume, and daily liquidity are among the metrics being discussed.
The current rule-change pathway requires each spot crypto ETF to secure a Commission order before listing, a step designed for novel or complex products.
Moving to a standing rule for qualifying assets would shorten timelines and reduce iterative comment cycles between the agency and applicants.
He added that the key question centers on the eventual thresholds but predicted they “will likely be loose enough where the vast majority of top 50 coins would be OK to be ETF-ized.”
