SEC Issues Guidance to Accelerate Crypto ETF Approvals
The U.S. Securities and Exchange Commission (SEC) released new guidance to speed up approvals for crypto exchange-traded funds (ETFs). This update allows some ETF filings to become effective automatically under Section 8(a) once delaying amendments are removed. Several crypto ETF applicants used this approach during the recent government shutdown.
Bloomberg ETF analyst Eric Balchunas said this could accelerate pending ETF filings. He noted Bitwise’s XRP ETF as likely next in line for approval under this guidance.
Clearing the Backlog Amid Growing Crypto Demand
During the government shutdown, issuers submitted over 900 registration statements, causing delays. The SEC’s Division of Corporation Finance will now process filings in the order received with these key points:
- Filings without delaying amendments will become effective automatically after 20 days.
- Issuers can request acceleration once normal SEC operations resume.
- Post-effective amendments filed during the closure will be effective unless issuers choose to opt out.
This clearance comes as many crypto ETFs, including those for XRP and Solana, await approval in a fast-growing market.
Market Impact and Project Crypto Background
The SEC guidance followed the launch of Canary Capital’s XRPC ETF, which raised $46 million on its first day. This strong debut has raised expectations for other issuers like Bitwise, 21Shares, and CoinShares to fast-track their XRP, SOL, and other digital asset ETFs.
The new filing rules were announced alongside the SEC’s “Project Crypto,” a major policy that defines token types and clarifies when tokens are securities. This project moves the SEC toward formalized regulation and faster approval processes, providing clearer rules for digital-asset issuers.
Analysts expect many issuers to update filings soon to take advantage of the faster 20-day effective timeline or ask for acceleration. This could lead to a rapid increase in crypto ETF launches in the U.S. market.
