The ETF market just got a shot in the arm from D.C.

Wall Street's main watchdog is cutting back regulatory red tape for exchange-traded funds, potentially triggering faster growth for the $4 trillion market. After more than a decade of wrangling, the Securities and Exchange Commission said Thursday that it had eased constraints that the industry argues have slowed down the process of issuing new ETFs. Specifically, the regulator eliminated the need for ETF providers to seek a special order from the agency before funds can be sold to investors. [Recommended video: How the 2020 elections could impact ESG investing]​ "As the ETF industry continues to grow in size and importance, particularly to Main Street investors, it is important to have a consistent, transparent, and efficient regulatory framework that eliminates regulatory hurdles while maintaining appropriate investor protections," SEC Chairman Jay Clayton said in a statement. The changes represent a delayed but nonetheless major win for the ETF industry, which has long complained about the wait and cost associated with getting the SEC to sign off on new funds. The move, which is focused on straightforward ETFs based on things like the S&P 500 and bond indexes, may also add more fuel to the global shift into passively managed funds. The new, streamlined process will still require firms wishing to list more complex products to seek approvals through the more drawn out approach the regulator currently uses. For example, so-called leveraged funds that hold derivatives to juice more returns from their strategy won't get an easier pass. [More: SEC cracks down on ETF names that could be misleading]​