The U.S. Securities and Exchange Commission (SEC) has announced changes to the process for reviewing registration applications for launching cryptocurrency ETFs. The new clarification allows issuers to expedite the effectiveness of their applications if certain technical requirements are met. This has become particularly relevant after the conclusion of the longest government shutdown in U.S. history, which lasted 43 days and resulted in a backlog of over 900 applications awaiting review.
This is reported by Business • Media
SEC Explains New Rules for Cryptocurrency ETFs
Bloomberg analyst Eric Balchunas pointed out a document released by the SEC that details the application processing procedure for submissions made during the regulator’s work suspension. According to these guidelines, issuers who submitted registration forms during the shutdown without delaying amendments or updated forms in accordance with Section 8(a) will receive automatic effectiveness of their applications after 20 days. At the same time, the SEC will not require additional actions, even if there were omissions under Rule 430A. Companies looking to launch their funds more quickly can utilize Rule 461 and request expedited review.
“My guess is some of those crypto ETFs that didn’t meet the 8a requirement will try to do so as quickly as possible. Bitwise XRP, I think, is next in line…” Balchunas noted.
New Opportunities for Launching Crypto Funds
Thanks to the updated approaches, companies have been able to more actively utilize the automatic approval mechanism. In particular, new cryptocurrency ETFs, such as Canary Capital, Bitwise, and Grayscale, entered the market in November. On November 13, the launch of another product—the spot XRP ETF from Canary Capital—took place, which was listed on Nasdaq with SEC approval, also through the automatic approval mechanism.
It is worth noting that the government shutdown in the U.S. lasted from October 1 to November 12, significantly delaying the launch of many crypto funds. However, the new SEC clarifications have enabled issuers to expedite the process and unlock the backlog of applications accumulated during the regulator’s work suspension. New products, including the Bitwise XRP ETF, are expected to appear on the market soon.