The US Securities and Exchange Commission, known as the SEC, recently voted on amendments in the rules governing the processing times for companies applying for listings. In other words, the ETFs approval times are now shorter, since the SEC announced it would be streamlining the application process for investment companies.
Rumors in the cryptonews started spreading, showing that we could see expedited crypto and blockchain firms operating in a “more efficient and less costly manner.” A July 6 announcement on the SEC website shows that the Commission said it had voted to adopt rule amendments for expedited review process for companies under the Investment Company Act.
In this manner, the ETF approval times are now shorter, and the SEC referred to a “new informal internal procedure” for any other applications that did not qualify for the expedited process. The announcement also said that it made the changes for a “more efficient” application process, providing “additional certainty and transparency.” Granting such exemptions, according to the SEC, could provide “important economic benefits to funds and their shareholders.”
“The application process under the Investment Company Act is an important component of our regulatory structure,” said SEC Chairman Jay Clayton. “The changes approved today will modernize and streamline this process, resulting in improved transparency, reduced costs, and a more efficient use of our staff’s resources.”
As part of the new rules under the Investment Company Act of 1940, any company that is applying for a listing with the SEC now faces a number of challenges to operate legally. The SEC said that these changes would be effective 270 days following their publication in the Federal Register.
As you probably know from our crypto regulation news, the Commission has been hesitant to sign off on Bitcoin exchange-traded funds (ETFs), including projects like WisdomTree, Arca Labs, and others.
The new amendments mean that ETF approval times are considered to be shorter and funds including ETFs that required an exemption from the SEC in order to operate could qualify for an expedited review. The fund, however, would need to file a third application which is “substantially identical” to others granted relief within three years.
The SEC noted that in this case, the Commission will provide a notice to an applicant within 45 days of the date of filing, assuming that the company responds within 30 days.
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