Proposed Rule Change by CBOE
The Chicago Board Options Exchange (CBOE) has proposed a significant rule change to the US Securities and Exchange Commission (SEC) aimed at simplifying the process for crypto fund issuers to launch new products. This request, noted by ETF expert Nate Geraci, may eliminate the need for separate approvals for each individual crypto exchange-traded fund (ETF) if certain criteria are met. Geraci also mentioned that a similar proposal has been put forward by NYSE Arca, indicating a broader movement within financial markets to facilitate crypto offerings.
Current Regulatory Framework
Currently, the regulatory framework mandates that exchanges submit a 19b-4 form for every new crypto ETF, which often leads to delays and a cumbersome examination by the SEC. However, this proposed rule change could significantly hasten the approval timeline, allowing issuers to forgo the usual time-consuming request process for each fund.
Alignment with White House Initiatives
This initiative coincides with recent actions by the White House, which is working on aligning cryptocurrency regulations with those applicable to traditional financial sectors. The Trump administration’s Working Group on Digital Assets has published a comprehensive policy paper advocating for clearer regulations surrounding crypto trading and custody. Their recommendations seek to minimize bureaucratic hold-ups and streamline the process for bringing new crypto financial products to market.
Legislative Developments
In another related development, President Trump recently enacted the GENIUS Act, which lays the groundwork for a more comprehensive regulatory approach to stablecoins. Additional bills, including the CLARITY Act and the CBDC Anti-Surveillance State Act, have also cleared the House, focusing on crypto structure and setting parameters for central bank digital currencies. These legislative efforts will be taken up by the Senate when Congress reconvenes after its August recess, further highlighting the drive toward a more organized and regulated crypto market.
