SEC Streamlines Crypto ETF Approval Process, Removes 19b-4 Requirement for Faster Launch

The U.S. Securities and Exchange Commission (SEC) has instructed cryptocurrency exchange-traded fund (ETF) issuers to withdraw their 19b-4 filings, accelerating the approval pathway after new regulations eliminated a major procedural obstacle, according to a source familiar with the situation. This development follows the SEC's recent approval of generic listing standards, permitting exchanges to list commodity-based exchange-traded products (ETPs), including crypto-linked ones, without individual case-by-case reviews. These regulatory changes are anticipated to significantly lower barriers for launching spot cryptocurrency ETFs. Historically, issuers were required to collaborate with exchanges to submit 19b-4 filings—formal petitions to amend exchange rules—prior to any ETF listing. Under the revised framework, this step is no longer mandatory for certain products. Issuers now only need to file an S-1 registration statement, which outlines an ETF's structure and investment strategy, to potentially secure SEC approval. Bloomberg Intelligence ETF analyst James Seyffart commented, "The SEC can move absurdly fast if they really want to... Meaning that we could see approvals in a matter of days. But there's no guarantee of that." He added, "They still haven't greenlit Bitwise's BITW to convert into an ETF... So perhaps they'll allow these things to launch in sorts of rolling waves or it could be a shotgun start by underlying asset." In recent months, asset managers have submitted numerous spot crypto ETF proposals covering digital assets like Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). Eliminating the 19b-4 requirement could drastically expedite approvals, as this route previously involved exchanges like Nasdaq or NYSE Arca petitioning the SEC to alter listing standards for each new product—a process often spanning months. Now, with the SEC's updated position, exchanges can list crypto-based ETFs falling within the generic commodity ETP category without seeking rule changes repeatedly, shifting the approval focus primarily to the S-1 filing under direct SEC review. While the timeline for outstanding S-1s remains uncertain, this shift indicates a change in the SEC's approach to crypto markets, potentially enabling a broader array of digital asset funds to reach the market with reduced regulatory delays. Seyffart noted, "Everything is uncertain. Add in the prospect of a government shutdown and things can get really wonky."