Key Takeaways
- •The SEC has introduced new post-shutdown guidelines detailing how registration statements, including crypto ETF filings, proceed through Sections 8(a) and 461 of the Securities Act.
- •Generic listing standards, approved in September 2025, have eliminated the need for individual 19(b) approvals for qualifying crypto ETPs.
- •The government shutdown created a backlog of over 900 filings, prompting issuers to utilize the automatic 20-day effectiveness mechanism under Section 8(a).
- •The new SEC instructions offer issuers a choice between automatic effectiveness or requesting accelerated effectiveness under Rule 461 for quicker launches.
Introduction to the New SEC Guidelines
Following years of slow progress and intermittent regulatory pauses, the U.S. Securities and Exchange Commission (SEC) has released new guidelines that may expedite the approval timeline for cryptocurrency exchange-traded funds (ETFs). These updates come in the wake of an extended government shutdown, which halted progress on more than 900 pending registration filings across financial markets. As federal operations resumed, the SEC issued technical guidance outlining how issuers can advance ETF applications under Sections 8(a) and 461 of the Securities Act of 1933. This article aims to explain the changes, their significance, and how the updated procedures could shorten launch timelines for new crypto ETFs in the U.S.
The Regulatory Freeze: A Look Back
Throughout much of 2025, ETF issuers, particularly those focused on crypto, were already navigating a substantial procedural workload. Following the approval of spot Bitcoin ETFs in January 2024 and Ether ETFs in May 2024, filing activity surged. Numerous firms sought 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 necessitated individualized review under Section 19(b) of the Securities Exchange Act of 1934. This meant issuers were dependent on the SEC to publish proposed rule changes, open public comment periods, and issue approval or denial orders, with timelines varying significantly.
Pathway to Generic Listing Standards
On September 17, 2025, the SEC approved generic listing standards for commodity-based trust shares on Nasdaq, the Chicago Board Options Exchange BZX Exchange, and the New York Stock Exchange Arca. This development altered the regulatory process by removing the requirement for individual Section 19(b) rule change approvals for every qualifying crypto ETF. The new standards were announced concurrently with 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 addressed the long-standing bottleneck that had previously stalled many products, but the immediate push for launches was interrupted by the government shutdown.
The Shutdown Backlog
During the 43-day government shutdown, over 900 filings were submitted but could not be processed. ETF issuers faced a complete halt in review mechanisms, staff communication, and any means of advancing pending filings. In this environment of regulatory paralysis, the sole path forward for some issuers was to utilize an existing mechanism: the automatic 20-day effectiveness provision under Section 8(a) of the Securities Act of 1933. This provision allowed registration statements filed without a delay-in-time clause to automatically become effective after 20 days if the SEC did not take action or object. This mechanism proved instrumental in the launch of several funds, including Canary Capital's spot XRP ETF. The crisis and the subsequent reliance on this technical workaround underscored the need for a more efficient and formalized review process. This approach was directly referenced in the SEC guidance published after operations resumed. Once the SEC reopened, staff were instructed to resume work promptly and in an orderly fashion. Issuers immediately sought clarity on how filings submitted during the shutdown would be sequenced or amended.
What the SEC's New Guidelines Actually Change
On November 13, 2025, the SEC published a detailed set of technical clarifications explaining how it would process the backlog of filings accumulated during the shutdown period. The SEC's new guidance was applied to issuers such as Bitwise, which had an XRP ETF filing pending but had not yet completed the Section 8(a) process. The post-shutdown guidance established two primary mechanisms to move stalled applications toward launch.
Automatic 20-Day Effectiveness
As a remedy for filings submitted during the shutdown, the guidance confirmed that registration statements filed without a deferral would gain automatic effectiveness after 20 days under Section 8(a). The SEC also clarified that staff would not recommend enforcement action, even if the filing did not include Rule 430A information.
Request for Acceleration via Amendment
For issuers desiring a faster approval timeline or seeking to restore active regulatory oversight, the SEC guidance clarified that they could add an amendment deferral and subsequently formally request acceleration under Rule 461. This procedure allows issuers to move beyond the automatic 20-day countdown and seek accelerated effectiveness. The SEC also noted that the division would review filings in the order in which they were received.
Did you know? The generic listing standards apply only to exchange-traded products (ETPs) that hold an underlying commodity, such as digital assets, that trades on an ISG-member exchange or is subject to a regulated futures market with appropriate surveillance sharing.
What This Means for Crypto ETF Issuers Moving Forward
The SEC's guidance does not guarantee faster approval for every crypto ETF, as substantive legal review remains unchanged. However, the friction in the process has been reduced. The automatic-effectiveness mechanism under Section 8(a) now plays a more significant role, as filings submitted without a delay clause during the shutdown can become effective after the standard 20-day period unless the SEC intervenes. Rule 461 permits an issuer to request that the SEC accelerate the effective date of its registration statement to a specific time. To achieve this, an issuer must first amend its filing to return it to the standard delayed status and then submit a formal Rule 461 request to the SEC. This request is not a mere formality; it serves as confirmation that the issuer, underwriters, and advisers are fully aware of and accept their legal and antifraud liabilities under the Securities Act. By combining a Rule 461 acceleration request with the new generic listing standards, which bypass the older Section 19(b) delays, issuers have streamlined the entire process. This combination makes the path for compliant altcoin ETPs quicker and more predictable, enabling managers to target specific launch windows with greater certainty.
Why Speed Doesn't Mean Safety
While the SEC has accelerated the timing of approvals, it has also emphasized that core investor protection rules have not been relaxed. The primary takeaway for issuers is that fast approval does not diminish their legal responsibility. The SEC's post-shutdown guidance clarifies that the liability and antifraud provisions of the federal securities laws still apply to all registration statements, including those that become effective automatically under Section 8(a). This is supported by the core of the Securities Act of 1933: Section 11 and Section 12(a)(2). These rules impose strict liability under Section 11 and a heightened liability standard under Section 12(a)(2) for any material false statements or omissions in the registration documents. In simpler terms, if the prospectus is misleading, the issuer is liable, and investors do not have to prove that the company acted carelessly or intentionally. The burden of ensuring accuracy remains with ETF providers, who must conduct thorough internal checks and due diligence to meet this high standard, especially when timelines are compressed.