SEC | New Crypto ETF Rules | 75-Day Approval Wait
Edited By
Emily Harper
July 9, 2025 — The U.S. Securities and Exchange Commission (SEC) plans to shorten the approval period for cryptocurrency exchange-traded funds (ETFs) from 240 days to just 75 days. This marks a significant policy shift aimed at hastening the review process for various crypto assets, including Bitcoin Cash (BCH).
Critics voice concerns over the compatibility of ETFs with actual crypto operations. "ETF’s isn't adoption," one commenter stated, emphasizing that shares of an ETF can’t be redeemed for underlying cryptocurrencies like BCH. Others lament cash settlements that overshadow the original intent of blockchain technology.
Controversy Surrounding ETFs
The discussion around this decision highlights key themes:
Centralization vs. Decentralization: Many argue that ETFs do not represent true crypto ownership, as shares are managed through a centralized system run by the Depository Trust & Clearing Corporation (DTCC). This raises questions about the transparency of share distribution.
Market Integrity: Comments indicate a fear of obfuscation in share issuance. "Some folks want people to put their dollars in a cash-settled dollar instrument it's completely incompatible with blockchain," another user commented. This highlights worries that current structures could handicap genuine price discovery.
Public Sentiment: There’s a split response; while some support faster adoption of crypto through ETFs, others criticize the approach as fundamentally flawed.
"This sets a dangerous precedent!" - A cautionary perspective from a top commenter.
Key Insights
🚀 Shortening Approval Times: New rules will expedite the process for about dozens of applications.
📉 Skepticism Remains: Many in the crypto community feel this shift does not equate to genuine adoption.
⚖️ Transparency Concerns: Users stress the need for better clarity in how shares are handled and valued.
Interestingly, this development may spark new discussions about how crypto can coexist with traditional finance systems without losing its core values. Will this new framework enhance legitimacy, or will it further separate individuals from the true essence of cryptocurrencies? Only time will tell as the crypto world watches closely.
What Lies Ahead for Crypto ETFs
There's a strong chance that the SEC's move to cut the approval time for crypto ETFs will lead to a flood of new applications. Experts estimate that this could spur innovation in the market, increasing the number of ETFs available for various cryptocurrencies, potentially up to 30 by the end of the year. However, the concerns over centralization and transparency are likely to linger, causing some investors to remain hesitant. As pressure mounts for regulatory clarity, we could see a push for more robust frameworks that genuinely reflect the decentralized ethos of crypto, with about a 70% probability of new measures being implemented in the next 12 months.
A Curious Coincidence in Groundbreaking Innovations
In the mid-1700s, the advent of the steam engine revolutionized trade and manufacturing. However, despite its potential, many feared it would undermine traditional crafts and livelihoods. Much like today's skepticism toward crypto ETFs, people questioned whether this technology represented true progress or merely a shift in economic power. Just as steam power eventually reshaped industries, there's an opportunity for the current crypto landscape to mature, balancing innovation with the foundational principles that sparked its creation.