Overview

New guidelines released by the SEC aim to transform the landscape for crypto ETFs by facilitating quicker approvals and reducing existing backlogs in filings. This article delves into the significance of these updates and their potential impact on the market.

Key Points:

• The SEC has released updated post-shutdown guidelines clarifying how registration statements, including those for crypto ETFs, will proceed through Sections 8(a) and 461 of the Securities Act.
• Recently approved generic listing standards eliminated the previous requirement for individual 19(b) approvals for qualifying crypto ETPs.
• A significant backlog of more than 900 filings arose from a governmental shutdown, leading issuers to utilize an automatic 20-day effectiveness mechanism under Section 8(a).
• The fresh SEC directives enable issuers to select between the automatic effectiveness and the option to request accelerated effectiveness under Rule 461.

Following a prolonged governmental shutdown, the SEC has proposed measures to speed up the approval timeline for cryptocurrency exchange-traded funds (ETFs). This comes in light of the record-long halt that affected over 900 registration applications. Upon resumption of federal activities, the SEC provided technical guidance about how to move ETF applications forward in accordance with the Securities Act.

Historical Context

Throughout much of 2025, particularly for crypto-focused ETF issuers, the procedures had become cumbersome. A surge in filing activity followed the approvals of spot Bitcoin and Ether ETFs in early 2024, prompting companies to seek listings for various altcoin-related products.

New Licensing Standards

On September 17, 2025, generic listing standards by the SEC for commodity-based trust products on major exchanges were implemented, allowing qualified ETFs to bypass previous individual rule change approvals.

The Impact of the Shutdown

During a 43-day governmental shutdown, over 900 ETF filings were left unreviewed, causing significant delays. Many issuers then relied on existing provisions to attempt quick launches during this standstill.

Future Implications

While these changes might not guarantee expedited approval for every crypto ETF, they present a smoother process moving forward. The adjustments clarify how submissions that were made during the shutdown will be managed, enhancing the overall efficiency for specific launches. However, issuers will still need to fulfill legal responsibilities rigorously to ensure the safety of investors under the prevailing federal laws.