SEC Drops 19b-4 Filings, Speeds Up Spot Crypto ETF Decisions

Key Points

• SEC removes 19b-4 filings, leaving only S-1 required for crypto ETF approvals.
• Faster approvals may spark volatility as traders weigh rally-or-retrace scenarios.
• Analysts expect leverage flushes before more sustainable breakouts in major tokens.

The SEC has accelerated the path for spot crypto ETFs after removing the need for 19b-4 filings. This adjustment could allow approvals to arrive much sooner, reshaping expectations for traders and asset managers.

Reporter Eleanor Terrett noted that issuers of ETFs tied to assets such as ADA, LTC, DOGE, SOL, and XRP were asked to withdraw their pending 19b-4 submissions. This follows the SEC’s approval of generic listing standards two weeks ago.

Under the new framework, exchanges no longer need individual rule change requests for each token-based ETF. Instead, approvals can now move forward with only S-1 filings, which remain under direct SEC review.

By consolidating filings, regulators have eliminated a key administrative step that previously slowed applications. According to Terrett, withdrawals could begin this week, opening the door for accelerated decisions.

Analysts Warn of Uncertainty Despite Faster Timelines

The SEC’s move is being interpreted as evidence the new system is functioning as intended. Exchanges can now rely on broader standards to list eligible ETFs, avoiding repeated regulatory hurdles.

However, uncertainty remains around timing. Bloomberg Intelligence analyst James Seyffart explained that the SEC could approve filings in a matter of days if it chooses. Yet he cautioned that outcomes may vary, with some issuers potentially facing rolling approvals instead of simultaneous launches.

Seyffart also noted that delays in other applications, such as Bitwise’s pending conversion, highlight the SEC’s tendency to follow filing order. This could influence how quickly each product reaches the market.

Asset managers have already submitted numerous ETF proposals across different cryptocurrencies, many of which included both 19b-4 and S-1 filings under the older process. Now, only the S-1 documents remain relevant.

While the exact timeline is still unclear, the rule change marks a significant shift in how crypto ETFs move through the regulatory pipeline. Markets now face the prospect of sudden approvals and potential volatility if decisions arrive earlier than anticipated.