The U.S. Securities and Exchange Commission (SEC) is taking steps toward establishing a more structured framework for crypto exchange-traded products (ETPs), issuing new guidance designed to clarify the registration process.
In a statement released on July 1, the SEC’s Division of Corporation Finance outlined the key elements that issuers should address when submitting registration statements for crypto ETFs under both the Securities Act and the Exchange Act.
Although the guidance doesn’t introduce new regulations, it provides clearer expectations in areas such as net asset value (NAV) calculation, custody practices, benchmark selection, service provider arrangements, and risk disclosures.
Issuers will need to detail how their crypto assets are stored—including whether private keys are kept in hot or cold wallets—who has access to them, and what insurance protections are in place. The SEC is also emphasizing transparency around service providers and potential conflicts of interest, such as whether the ETF sponsor or its affiliates hold any of the underlying crypto assets.
The agency said the guidance reflects insights gathered from recent spot crypto ETF filings. By highlighting common disclosure issues, the SEC aims to streamline the review process and promote a more consistent and efficient path to approval.
This update comes amid reports that the SEC is considering a broader framework for listing spot crypto ETFs.
SEC Could Be Crafting Formal Rulebook for Crypto ETFs: Report
According to a recent post on X by journalist Eleanor Terrett, the SEC is reportedly in the early stages of developing a formal listing framework for crypto ETFs.
While specifics are still unclear, the proposed framework aims to streamline the approval process by offering a faster and more predictable path for launching new ETFs—particularly those tied to tokens that meet certain standards.
If implemented, the new system could allow qualifying ETFs to bypass the current 19b-4 rule change process. Instead, issuers would simply file a standard S-1 registration and wait 75 days before listing, significantly cutting down on regulatory delays.
Key eligibility factors may include market capitalization, trading volume, and liquidity. However, as the framework remains under discussion, the final criteria and structure have yet to be determined.
