SEC Introduced Accelerated Review Procedure for ETFs

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The U.S. Securities and Exchange Commission announced plans to streamline the application process for investment companies, which could make blockchain and cryptocurrency companies more efficient and cost-effective.

In a statement posted on the SEC’s website on July 6, the Commission announced that it had voted to introduce a new “accelerated review procedure” for issuing new ETFs and other securities. The U.S. Securities and Exchange Commission voted against a change in the rules governing the processing times of companies that request a list, the Commission said Thursday. He also referred to the new informal internal procedure as a “pre-review procedure” and not an accelerated method for other requests not eligible for accelerated procedures.

 The change will “make the application process more efficient and provide additional certainty and transparency,” the statement said.

The Investment Company Act filing process is an essential part of the SEC’s regulatory structure, “said SEC Chairman Jay Clayton. The amendments adopted today will streamline and modernize the procedure and lead to greater transparency, more excellent safety, and a more efficient application process. Granting such exemptions could bring significant economic benefits to the funds and their shareholders, the SEC said.

Under the Investment Company Act, companies that want to be listed with the SEC face several challenges when it comes to operating legally. The SEC said the changes would take effect as soon as they were published in the Federal Register.

The Faster Way for Crypto Funds

Arca Labs, which operates its ArCoin on Ethereum’s blockchain, has speculated that the platform could be a platform for its funds to trade on a major securities exchange registered with the SEC. The Commission is in the process of registering a New York-based bitcoin exchange for funds traded on WisdomTree, the world’s largest exchange.

Under the new changes, funds, including EFTs whose operation requires an exemption from the SEC, could be eligible for an expedited review. The funds would have to undergo a report within three years and any other relief granted within three years.

According to the report, the review process for a typical IPO at the SEC involves three rounds of investigations and takes one to two months. If the company responds within 30 days, “the Commission will inform the applicant within three months of the case and the submission of its application for an accelerated review,” the Commission said. Grayscale Bitcoin Trust became the first digital investment vehicle for reporting to the Securities and Exchange Commission (SEC).

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