Key points to remember:
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The SEC has introduced new post-ruling guidance that explains how registration statements, including crypto ETF filings, progress through Sections 8(a) and 461 of the Securities Act.
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Generic listing standards approved in September 2025 removed the need for individual 19(b) approvals for eligible crypto ETPs.
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The government shutdown created a backlog of more than 900 filings, causing issuers to rely on the automatic 20-day effective mechanism under Section 8(a).
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The SEC’s new guidance allows issuers to choose between automatic effectiveness or a request for accelerated effectiveness under Rule 461 for faster launches.
After years of slow progress and periodic regulatory pauses, the U.S. Securities and Exchange Commission has issued new guidelines that could speed up the approval timeline for cryptocurrency exchange-traded funds (ETFs).
These updates follow a prolonged and record-breaking government shutdown that halted progress on more than 900 pending financial market registration filings. As federal operations resumed, the SEC issued technical guidance describing how issuers can advance ETF applications under Sections 8(a) and 461 of the Securities Act of 1933.
This article explains what changed, why it matters, and how the updated procedures could shorten the timelines for launching new crypto ETFs in the United States.
The regulatory freeze: a step backwards
For most of 2025, ETF issuers, particularly those focused on crypto, were already facing a heavy procedural burden. Following the approval of spot Bitcoin ETFs in January 2024 and Ether ETFs in May 2024, deposit activity has increased, from companies looking to list products tracking altcoins such as Solana (SOL), XRP (XRP), Chainlink (LINK), Dogecoin (DOGE) and others.
The regulatory process for many of these products still required individualized review under Section 19(b) of the Securities Exchange Act of 1934. This meant that issuers depended on the SEC to publish proposed rule changes, open public comment periods, and issue orders of approval or denial. Deadlines varied considerably.
Pathway to Generic SEO Standards
On September 17, 2025, the SEC approved generic listing standards for commodity-based trust stocks on Nasdaq, the Chicago Board Options Exchange BZX Exchange and the New York Stock Exchange Arca. This changed the regulatory process by removing the need for individual Section 19(b) rule change approvals for each eligible crypto ETF.
The new standards were announced alongside the approval of the first multi-crypto asset ETF, the Grayscale Digital Large Cap Fund, which holds Bitcoin (BTC), Ether (ETH) and other coins.
This streamlining removed the bottleneck that had held up products for years, but the immediate launch was halted by the government shutdown.
The shutdown backlog
During the 43-day shutdown, more than 900 files were submitted but could not be processed. ETF issuers were left with no review mechanisms, no communication with staff, and no way to advance pending filings.
In this environment of regulatory paralysis, the only path forward for some issuers was to use an existing mechanism: the 20-day automatic effective provision under Section 8(a) of the Securities Act of 1933. This allowed registration statements filed without a sunset provision to automatically take effect after 20 days if the SEC failed to act or object. This mechanism has been useful for the launch of several funds, including Canary Capital’s XRP spot ETF.
The crisis and the reliance on a technical workaround have highlighted the need for a more efficient and formal review process.
This approach was directly referenced in SEC guidance issued after trading resumed. Once the SEC reopened, staff were instructed to return to work quickly and in an orderly manner. Issuers immediately requested clarification on how filings submitted during the shutdown would be sequenced or modified.
What the new SEC guidelines really change
On November 13, 2025, the SEC issued a detailed set of technical clarifications explaining how it would address the shutdown period backlog.
The new SEC guidance was applied to issuers such as Bitwise, which had a pending XRP ETF filing but had not yet completed the Section 8(a) process.
Post-shutdown directives created two main mechanisms to move stuck applications to launch.
20-day automatic effectiveness
As a remedy to filings submitted during the shutdown, the guidance confirmed that registration statements filed without postponement would automatically become effective after 20 days under Section 8(a). The SEC also clarified that the staff would not recommend enforcement action even if the filing does not include Rule 430A information.
Request for acceleration by amendment
For issuers that want a faster approval timeline or want to reestablish active regulatory oversight, the SEC guidance has clarified that they can add an amendment deferral and then formally request acceleration under Rule 461. This allows issuers to go beyond the 20-day automatic countdown and seek accelerated effective date. The SEC also noted that the division would review the filings in the order in which they were received.
Did you know? Generic listing standards apply only to exchange-traded products (ETPs) that hold an underlying commodity, such as digital assets, that trade on an ISG member exchange or that are subject to a regulated futures market with appropriate oversight sharing.
What this means for crypto ETF issuers in the future
The SEC guidelines do not guarantee faster approval for every crypto ETF. The substantive legal control remains unchanged. What has changed is the friction in the process. The automatic effective mechanism provided in Section 8(a) now plays a more significant role, as filings submitted without a time limit provision during the shutdown may take effect after the standard 20-day period, unless the SEC intervenes.
Rule 461 allows an issuer to request that the SEC accelerate the effective date of its registration statement to a specific time. To do so, an issuer must first amend its filing back to standard deferred status and then submit a formal Rule 461 application to the SEC. This request is not a simple formality. It serves as confirmation that the issuer, underwriters and advisors are fully aware of and accept their legal and antifraud responsibilities under the Securities Act.
By combining a Rule 461 acceleration request with the new generic listing standards, which bypass the old Rule 19(b) deadlines, issuers have streamlined the entire process. This combination makes the path to compliant altcoin ETPs faster and more predictable, allowing managers to target specific launch windows with greater certainty.
Why speed does not equal safety
Even as the SEC accelerated the timeline for approvals, it also emphasized that basic investor protection rules had not been relaxed.
The main takeaway for issuers is that early approval does not reduce their legal liability. The SEC’s post-closing guidance clarifies that the liability and enforcement provisions of the federal securities laws still apply to all registration statements, including those that become automatically effective under Section 8(a).
This is supported by the gist of the Securities Act of 1933: Section 11 and Section 12(a)(2). These rules impose strict liability under Section 11 and an enhanced liability standard under Section 12(a)(2) for any material misrepresentation or omission in registration materials. Simply put, if the prospectus is misleading, the issuer is liable and investors do not have to prove that the company acted recklessly or intentionally.
The responsibility for ensuring accuracy lies with ETF providers, who must carry out thorough internal checks and exercise due diligence to meet this high standard, particularly when deadlines are tight.
