Michaela
The U.S. Securities and Exchange Commission (SEC) has moved to simplify the approval process for crypto ETPs. The agency unveiled new guidance that provides issuers with greater clarity and consistency in bringing these crypto-linked funds to market.
In an official statement, the Commission said its Division of Corporation Finance issued guidance outlining how existing federal securities disclosure rules apply to the registration and offering of crypto asset exchange-traded products (ETPs).
The guidance outlined a wide range of disclosure expectations, including how issuers calculate net asset value, choose service providers, manage asset custody, and address potential conflicts of interest.
The guidance is directed specifically at spot and derivative-based crypto ETPs registered under the Securities Act of 1933 and the Exchange Act of 1934. If implemented, it would represent a notable regulatory shift, allowing exchanges to list eligible crypto ETPs following a 75-day review period, thereby streamlining the process and accelerating time to market.
Additionally, the SEC emphasized that issuers must customize their disclosures based on the specific structure of their products. At the same time, the agency identified several critical areas that will be subject to heightened regulatory scrutiny. These include the methods used to select and value underlying assets, the practices surrounding custody and insurance, and the potential for conflicts of interest involving affiliated entities.
Issuers are also required to provide detailed explanations of the creation and redemption processes for their products, with particular attention to how these mechanisms function during periods of market volatility or limited liquidity.
The Commission’s latest actions reflect an evolving approach to crypto regulation, signaling a shift toward more structured disclosure requirements across a broader spectrum of digital asset products.
Significantly, the new standards arrive amid ongoing collaboration between the SEC and exchanges on developing a generic listing framework—one that could enable certain token-based ETFs to forgo the traditional 19b-4 rule change process.
The SEC’s latest guidance emphasizes its broader effort to bring clarity to the digital asset space while balancing innovation with investor protection. As the crypto ETP landscape evolves, market participants will be watching closely to see how regulatory expectations shape future product offerings and market access in the months ahead.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
