SEC Streamlines Path for Spot Crypto ETFs with Rule Change

The U.S. Securities and Exchange Commission (SEC) has taken a major step toward accelerating the approval of spot cryptocurrency exchange-traded funds (ETFs). According to sources, the agency has asked issuers to withdraw their pending 19b-4 filings after recently approving new generic listing standards. These rules allow exchanges such as Nasdaq and NYSE Arca to list commodity-based exchange-traded products (ETPs), including crypto ETFs, without requiring separate reviews for each product.

This regulatory shift removes a key hurdle that historically slowed down ETF launches. Previously, issuers had to submit both a 19b-4 filing, which required exchanges to petition the SEC for rule changes, and an S-1 registration statement detailing the ETF’s structure. Under the updated framework, issuers now only need to file an S-1, significantly reducing the approval timeline.

Industry analysts believe this move could bring spot crypto ETFs to market much faster. Bloomberg Intelligence ETF analyst James Seyffart noted that the SEC has the ability to move “absurdly fast” if it chooses, suggesting approvals could happen within days. However, he cautioned that the agency may stagger approvals based on filing order or allow multiple launches simultaneously.

Over the past year, asset managers have sought approval for a variety of spot crypto ETFs tied to tokens such as Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). These proposals reflected the old two-step process, but with the 19b-4 requirement eliminated, issuers may see fewer delays in bringing their products to market.

The SEC’s updated stance marks a shift in its approach to crypto markets, potentially opening the door to broader institutional adoption of digital asset ETFs. While the timeline for approvals remains uncertain, this development positions the U.S. closer to mainstream acceptance of crypto-based investment products.