The U.S. Securities and Exchange Commission (SEC) has introduced significant procedural updates that could dramatically accelerate the approval process for crypto exchange-traded funds (ETFs) delayed during the recent U.S. government shutdown. With more than 900 filings submitted while the agency was offline, the SEC’s new guidance offers clarity—and a potential fast track—for issuers eager to bring digital-asset funds to market.
Bloomberg analyst Eric Balchunas highlighted the importance of the update, noting that several crypto ETF issuers who previously failed to meet the 8(a) requirement may now rush to bring their filings into compliance. According to him, Bitwise’s proposed XRP ETF could be one of the next products to debut, given the streamlined approval route now available.
The SEC’s newly published recommendations detail how the agency plans to process the backlog, particularly focusing on ETF registration statements that became stuck in procedural limbo. The guidance outlines several key points designed to offer clarity, speed and predictability to issuers navigating the delayed review process.
One of the most impactful clarifications is that if an issuer removed the delaying amendment from a filing—or submitted a new form without it—during the shutdown, that filing will now automatically become effective after 20 days under Section 8(a). This auto-activation removes the need for further SEC review in many cases, dramatically reducing waiting times.
The Commission also confirmed it will not require additional actions from issuers who may have omitted information required under Rule 430A, offering further relief to companies affected by the shutdown’s timing. For issuers seeking an even quicker pathway to activation, the SEC allows them to reintroduce a delaying amendment and request acceleration under Rule 461.
Forms submitted during the shutdown will be reviewed in standard queue order, and previous post-effective amendments will be automatically deemed effective unless issuers explicitly request a postponement. This new structure gives crypto ETF providers a clearer roadmap for bringing their products to market without unexpected procedural setbacks.
The extended 43-day shutdown—from October 1 to November 12, the longest in U.S. history—caused significant delays in the launch of several crypto-related funds that were originally planned for October. During that period, issuers increasingly relied on the automatic approval mechanism via updated S-1 forms lacking postponement language, which go effective after 20 days unless the SEC objects. This mechanism has already enabled notable launches from Canary Capital, Bitwise, and Grayscale throughout November.
Most recently, on November 13, the U.S. market saw the introduction of a spot XRP ETF by Canary Capital, whose listing on Nasdaq was also approved under the automatic activation pathway. The SEC’s guidance now paves the way for additional crypto ETFs to follow this fast-tracked model, potentially marking a new era of quicker regulatory processing for digital asset investment products.
Conclusion:
The SEC’s revised procedures signal a crucial shift in how crypto ETFs can navigate regulatory hurdles, especially in the wake of the government shutdown. By simplifying approval pathways and offering clearer guidance, the Commission has opened the door for accelerated launches and increased competition within the digital asset ETF market. As issuers move quickly to leverage these changes, investors can expect a more dynamic and responsive crypto ETF landscape in the months ahead.
