The U.S. Securities and Exchange Commission (SEC) has released important guidance regarding the status of cryptocurrency exchange-traded funds (ETFs) and other registrations that are currently pending with the commission. This announcement follows the recent conclusion of the longest government shutdown in U.S. history, signified by President Trump”s signing of a bill to reopen the government.
During the government shutdown, the SEC”s Division of Corporation Finance received over 900 registration statements from various issuers. To enhance transparency for those with pending filings, including crypto ETFs, the SEC issued this new guidance on November 13. Notably, prior to the shutdown, the SEC had already issued guidance that enabled certain ETFs related to Solana, Litecoin, HBAR, and XRP to automatically become effective through an 8-A filing and listing certification from exchanges.
The SEC has clarified that issuers are not required to submit a delaying amendment now that the government shutdown has concluded. Provided that the issuer incorporated the language specified by Rule 473(b) or submitted a new registration statement without a delaying amendment, the crypto ETF will become effective after 20 days under Section 8(a) of the Securities Act and Rule 459.
The commission emphasized, “The company and its representatives should ensure that the registration statement does not contain any material misstatements or omissions of material information required to be stated therein or necessary to make the statements therein not misleading.” This indicates a continued emphasis on compliance and accuracy in filings.
As the SEC staff works diligently to address the backlog of filings that accumulated during the shutdown, it is crucial to note that some ETF applications, such as the BlackRock Bitcoin Premium Income ETF, faced delays due to the need for further review.
In addition, the SEC will evaluate requests from issuers wishing to expedite the effective date of their crypto ETFs before the completion of the 20-day waiting period. However, issuers must formally submit such requests to the commission for approval under Rule 461, specifically using the 8-A filings.
If any filing was under review prior to the shutdown, the SEC has committed to continuing that review process. Consequently, it is anticipated that the commission will prioritize the approval of many crypto ETFs based on the order in which they were received.
