SEC Releases New Guidance for Crypto ETP Filings

SEC Issues Guidance for Crypto ETP Filings Following Spot ETF Approvals

On July 1, 2025, the U.S. Securities and Exchange Commission (SEC) released new guidance for filing crypto Exchange Traded Products (ETPs). This move comes after the approval of 11 Bitcoin spot ETFs in January 2024; signaling a shift in the SEC’s historically cautious stance on crypto-related financial products. The guidance offers a detailed “how-to” manual for companies filing crypto ETP applications, aiming to streamline the process and avoid rejections, which had plagued prior applications.

This timely guidance reflects the SEC’s recognition of the evolving crypto market, providing clearer filing pathways for crypto ETPs. The shift in regulatory approach comes after significant market self-adjustment, with firms learning how to navigate the filing process through trial and error. The SEC’s decision to release this document now raises questions about its previous delays, as many argue that the commission’s actions tend to follow rather than lead market developments.

Timing of Guidance Reflects SEC’s Reactive Regulatory Approach

The SEC’s guidance arrives after the crypto industry adapted to ETF challenges. A 2023 study in the Journal of Financial Regulation revealed SEC delays often trail market innovations by 18-24 months. This highlights a reactive, not proactive, regulatory stance. While the crypto industry moved forward, the SEC’s guidance seems like a late effort to standardize the process.The SEC has delayed before, rejecting Bitcoin ETF applications. Eventually, it approved 11 Bitcoin spot ETFs in 2024. The SEC now faces pressure to adapt faster, as shown by its inclusion of XRP in recent approvals. This shift contrasts with its earlier lawsuit against Ripple over XRP’s status.

The SEC guidance on crypto ETP filings aims to streamline the process. It provides clearer steps for filing crypto ETPs, addressing past delays. As the market evolves, crypto regulations must adapt to ensure compliance. The SEC’s involvement in regulating crypto ETPs and ETFs will shape the future of crypto products. By updating its stance, the SEC hopes to foster growth while maintaining stability in crypto markets.