SEC Lifts the Fog on Crypto ETF Filings Post-US Government Shutdown

The U.S. Securities and Exchange Commission (SEC) has issued new guidance on crypto exchange-traded fund (ETF) filings. 

The agency also clarified the status of other registration statements that were pending during the recent government shutdown.

SEC Provides Update on Pending Crypto ETF Filings

This announcement comes on the heels of President Trump signing legislation to formally end the longest government shutdown in U.S. history. During the halt, the SEC’s Division of Corporation Finance received more than 900 registration statements from companies, including several for crypto ETFs.

Many people in the market were unsure what would happen to these filings while the government was on hold. The guidance released on November 13 is meant to give clear information and reassurance to companies about their pending submissions.

Before the shutdown, the SEC had issued guidance allowing several high-profile crypto ETFs, such as Solana, Litecoin, HBAR, and XRP, to go auto-effective.

This process required an 8-A filing and listing certification from their respective exchanges. This means that these ETFs could begin trading automatically once procedural requirements were met.

SEC Says No Delaying Amendment Needed After Shutdown

The SEC emphasized that issuers do not need to submit a delaying amendment following the reopening of government operations. Issuers that included language under Rule 473(b) or filed a new registration statement without a delaying amendment can expect their crypto ETFs to become effective. 

The standard 20-day period under Section 8(a) of the Securities Act and Rule 459 also applies to this process. In a recent statement, the SEC reminded companies and their representatives to keep registration statements accurate. They must make sure nothing important is wrong or missing.

SEC Works to Clear Filing Backlog After Shutdown

The SEC staff is working hard to catch up on filings that piled up during the shutdown. Some ETFs, like the BlackRock Bitcoin Premium Income ETF, were delayed because they needed extra review. 

However, the commission may consider requests from issuers to move up the effective date before the 20-day period ends.

To do so, issuers must submit an 8-A request under Rule 461. This is particularly if SEC staff had previously indicated that the registration statement was not under active review. 

Filings under review before the shutdown will continue to be processed in the order they were received. This is expected to result in a wave of approvals soon.

Now that the government shutdown is over, the SEC’s guidance clears up confusion in the crypto market. This is posed to give companies a clear path to get their ETFs approved and traded.