SEC Tells Issuers to Pull 19b-4s; ETFs Could Be Approved ‘Absurdly Fast’

The U.S. Securities and Exchange Commission (SEC) has asked crypto exchange-traded fund (ETF) issuers to withdraw their 19b-4 filings, paving the way for a faster approval process after new rules removed a key regulatory hurdle, a person familiar with the matter told CoinDesk.

Earlier this month, the SEC signed off on generic listing standards, which allow exchanges to list commodity-based exchange-traded products (ETPs), including those tied to cryptocurrencies, without requiring a separate review for each one. These changes are expected to lower the regulatory hurdles for launching spot crypto ETFs.

Historically, issuers had to work with exchanges to submit 19b-4 filings — formal requests to amend exchange rules — before an ETF could be listed. But under the updated framework, that step is no longer required for certain products. Issuers now only need to file an S-1, the document that details an ETF’s structure and strategy, to receive the SEC’s green light.

“The SEC can move absurdly fast if they really want to — as we’ve seen in the past. Meaning that we could see approvals in a matter of days. But there’s no guarantee of that," said Bloomberg Intelligence ETF analyst James Seyffart.

"They still haven’t greenlit Bitwise’s BITW to convert into an ETF which I’m guessing has to do with the first to file aspect that the SEC typically follows for the rest of the ETF industry. So perhaps they’ll will allow these things to launch in sorts of rolling waves or it could be a shotgun start by underlying asset."

Over the past several months, asset managers have filed a growing list of spot crypto ETF proposals covering coins like Solana (SOL), Litecoin (LTC) and Dogecoin (DOGE). These proposals included both 19b-4 and S-1 filings, reflecting the two-part process required under the old rules.

Removing the need for 19b-4 forms could significantly speed up approvals. The 19b-4 route involved exchanges, such as Nasdaq or NYSE Arca, petitioning the SEC to change their own listing standards each time a new product was introduced — a process that often took months.

Now, with the SEC’s updated stance, exchanges can list crypto-based ETFs that fall within the generic commodity ETP category without having to seek a rule change every time. This places the approval burden squarely on the S-1 filing, which remains under the SEC’s direct review.

While it’s unclear how quickly the SEC will move on the outstanding S-1s, the change marks a shift in the agency’s approach to crypto markets — potentially opening the door for a wider range of digital asset funds to come to market with fewer regulatory delays.

"Everything is uncertain. Add in the prospect of a government shutdown and things can get really wonky,” Seyffart said.