SEC's Updated Guidelines May Accelerate Crypto ETF Approvals
New regulations from the SEC aim to speed up the approval process for cryptocurrency exchange-traded funds, easing a backlog created by a recent government shutdown.
Overview
New guidelines released by the SEC could transform the crypto exchange-traded fund (ETF) landscape, facilitating quicker approvals and alleviating the extensive backlog incurred during the government shutdown.
- The SEC’s latest post-shutdown directives outline the pathway for crypto ETF applications under the Securities Act, specifically Sections 8(a) and 461.
- Generic listing standards, approved in September 2025, eliminate the necessity for individual rule change approvals for qualifying crypto products.
- The government shutdown created a significant backlog with over 900 registration filings pending, which the new rules seek to address with faster methodologies for review.
The Road to New Standards
Following regulatory hurdles in 2025, crypto-focused ETF issuers faced a challenging landscape. With the acceptance of spot Bitcoin and Ether ETFs in early 2024, demand surged for listings of assets like Solana, XRP, and Dogecoin, leading to a regulatory bottleneck due to the lengthy review process.
On September 17, 2025, the SEC’s approval of new generic listing standards represented a paradigm shift in the review process, making the clearance of multiple product applications much simpler. However, this push for product launches was curtailed by the pending government shutdown.
Shutdown Challenges
During a span of 43 days, issuers submitted thousands of filings but faced total paralysis in the approval process. The only recourse for many was to utilize the automatic effectiveness provision, allowing some filings to progress without immediate SEC action.
Implications of New Guidelines
The SEC’s guidance post-shutdown introduced multiple methods to propel stalled applications toward launch, including:
- Automatic 20-day Effectiveness: Filings without a delay clause become effective after 20 days.
- Request for Acceleration: Issuers may amend filings to request speedier processing under Rule 461.
These developments promise to facilitate quicker and more predictable paths for launching compliant crypto ETPs, albeit without compromising the rigorous legal standards required for public offerings.
Conclusion
The SEC’s measures do not imply a reduction in legal accountability; issuers remain fully responsible for the accuracy of their registration statements, highlighting a critical balance between increased review speed and investor protection.
