The SEC implements major reforms to the ETF approval process, addressing over 900 pending applications.

The U.S. Securities and Exchange Commission (SEC) announced on September 17, 2025, a new set of guidelines to fundamentally reform the approval process for exchange-traded funds (ETFs) related to digital assets. This reform aims to address the backlog of over 900 registration applications caused by the government shutdown, enabling the implementation of these changes.

Introduction of Unified Exchange Standards to Abolish Individual Approvals

The most notable change is the standardization of listing criteria for product trust shares on major exchanges such as Nasdaq, Cboe BZX Exchange, and NYSE Arca. Previously, crypto asset exchange-traded products (ETPs) required individual approval based on Section 19(b), but under the new guidelines, this requirement has been eliminated. With the introduction of unified standards, each ETP no longer needs to undergo individual review, significantly streamlining the ETF approval process.

Automatic Effectiveness System to Shorten Listing Periods

A new mechanism based on Section 8(a) of the Securities Act of 1933 and Rule 461 has also been introduced. Registration statements filed during the closure period without delay provisions will automatically become effective after 20 days. Additionally, issuers are granted the right to choose automatic or expedited effectiveness under Rule 461, enabling faster ETF approvals and listings.

Market Impact and Future Developments

This reform is expected to significantly shorten the timeline from approval to listing of crypto asset ETFs. For issuers, the time to market will be reduced, and investors will gain quicker access to new products. The abolition of individual approval requirements under Section 19(b) will promote standardization in ETF approvals, creating an environment where more crypto-related products can be supplied to the market.

The SEC’s recent measures represent an attempt to balance regulatory development with market efficiency. Moving forward, the influence of these unified standards will be closely monitored.