The Securities and Exchange Commission has asked crypto exchange-traded fund issuers to withdraw their 19b-4 filings, paving the way for faster approvals as the new rules remove a key regulatory hurdle. The shift follows the SEC's approval of generic listing standards earlier this month, allowing exchanges to list commodity-based products, including cryptocurrencies, without requiring separate reviews for each one.
Crypto Regulator Newsled proposals for spot crypto ETFs covering coins like SOL, LTC and DOGE over recent months. These proposals included both 19b-4 and S-1 filings, reflecting the two-part process required under previous rules.
Historically, issuers had to work with exchanges to submit 19b-4 filings, which are formal requests to amend exchange rules before an ETF could be listed. Under the updated framework, that step is no longer required for certain products, and issuers now only need to file an S-1 detailing an ETF's structure and strategy.
Bloomberg Intelligence ETF analyst James Seyffart noted that the SEC could move absurdly fast if they really wanted to, meaning approvals could happen in a matter of days. However, he added that there is no guarantee of that timeline and pointed to uncertainty around how the agency will sequence approvals.
The 19b-4 route involved exchanges such as Nasdaq or NYSE Arca petitioning the SEC to change their listing standards each time a new product was introduced, a process that often took months. With the SEC's updated stance, exchanges can list crypto-based ETFs falling within the generic commodity ETP category without seeking a rule change every time.
This places the approval burden squarely on the S-1 filing, which remains under the SEC's direct review. The change marks a shift in the agency's approach to crypto markets, potentially opening the door for a wider range of digital asset funds to come to market with fewer regulatory delays.
Seyffart mentioned that the SEC still has not greenlit Bitwise's BITW conversion into an ETF, which he suspects relates to the first-to-file principle the SEC typically follows for the ETF industry. He suggested the agency might allow products to launch in rolling waves or implement a shotgun start by underlying asset.
The final deadline for 16 spot crypto ETFs is by mid-October, according to previous reports. The imminent approval of spot altcoin ETFs in the United States would represent a major milestone for mainstream adoption of digital assets by institutional investors, keeping the macro outlook for crypto bullish.
Everything remains uncertain, and Seyffart noted that the prospect of a government shutdown could make things really “wonky.” While it is unclear how quickly the SEC will move on outstanding S-1 filings, the regulatory change potentially accelerates the timeline for multiple cryptocurrency ETF launches in the coming weeks.