TLDR
- SEC approval of generic crypto ETF rules removes the need for individual 19b-4 filings.
- Exchanges can now list compliant crypto ETFs in about 75 days under new standards.
- Major issuers like Fidelity and Franklin Templeton are revising applications to fit new rules.
- A possible U.S. government shutdown could slow SEC processing and delay crypto ETF launches.
The U.S. Securities and Exchange Commission (SEC) has asked issuers of crypto exchange-traded funds (ETFs) linked to XRP, Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), and Cardano (ADA) to withdraw their pending 19b-4 filings. The directive follows the regulator’s recent approval of generic listing standards for cryptocurrency products. These new rules remove the need for case-by-case reviews and shorten the approval window for compliant ETFs.
SEC Introduces Generic Listing Standards
The SEC’s decision builds on its earlier approval of generic listing standards that apply across cryptocurrency-based ETFs. These rules allow exchanges to list funds once they meet predefined requirements, bypassing the lengthy 19b-4 application process.
Under this framework, ETFs tied to digital assets may be listed similarly to commodity-based products regulated by the Commodity Futures Trading Commission (CFTC). The approach aims to streamline listings while preserving compliance and oversight. Market observers, including Bitwise Chief Investment Officer Matt Hougan, have suggested the change could open the door to broader crypto ETF adoption.
Journalist Eleanor Terrett reported that issuers might start withdrawing their older submissions within days. Final deadlines for some applications, such as Canary Capital’s Litecoin ETF, are approaching, but the SEC’s new policy renders those individual deadlines less relevant.
Faster Approvals and Fewer Bottlenecks
Furthermore, the generic standards dramatically shorten timelines for crypto ETF approvals. Instead of waiting months for separate reviews, issuers can proceed to market if they satisfy the required conditions. Exchanges no longer need to prepare extensive filings for each cryptocurrency product.
This change is already prompting action from major players. Issuers such as Fidelity and Franklin Templeton are revising their filings to fit the new model. Analysts expect the updated system to encourage more spot cryptocurrency ETFs, as the process now requires fewer procedural hurdles and offers clearer compliance pathways.
Possible Delays from Political Uncertainty
In addition, political factors could still affect the rollout of these new crypto ETFs. Bloomberg analyst James Seyffart warned that a potential U.S. government shutdown could disrupt SEC operations, including staffing and decision-making capacity.
His colleague Eric Balchunas added that while prospectuses are filed well in advance, the timing of approvals now rests with the SEC’s Division of Corporation Finance rather than statutory deadlines. Prediction market data from Polymarket places the likelihood of a shutdown near 69% as budget negotiations continue, adding uncertainty to launch schedules.
Market Impact Could Be Significant
Even so, market analysts expect the SEC’s generic listing framework to fuel a new wave of cryptocurrency ETF offerings once administrative issues settle. By cutting review times and allowing exchanges to list multiple crypto products under one set of standards, the agency could spur wider institutional participation.
As deadlines for individual filings lose relevance, attention now shifts to how quickly exchanges can adapt their compliance processes. The new structure may reduce delays while setting a clearer regulatory environment for crypto ETFs tied to major assets like XRP, SOL, DOGE, LTC, and ADA.
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