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crypto.news 2025-07-02 06:51:48

SEC lays out disclosure rules for crypto ETFs as it eyes clearer listing path

The U.S. Securities and Exchange Commission is moving closer to a more structured system for crypto exchange-traded products (ETPs) and has issued new guidance aimed at bringing more clarity to the registration process. In a statement released July 1, the SEC’s Division of Corporation Finance outlined what issuers should include when filing registration statements for crypto ETFs under the Securities Act and the Exchange Act. While the update doesn’t introduce new rules, it sets clearer expectations around key areas such as net asset value calculation, custody practices, benchmark selection, service provider arrangements, and risk disclosures. Issuers are expected to provide detailed information on how their crypto assets are stored, including whether private keys are held in hot or cold wallets, who has access, and what insurance protections are in place. You might also like: XRP, LTC, SOL lead altcoin ETF buzz as approval odds climb The regulatory watchdog is also pushing for greater transparency around service providers and potential conflicts of interest, such as whether the sponsor or its affiliates hold the underlying tokens. According to the SEC, the guidance is based on observations from recent spot crypto ETF filings. By laying out common disclosure issues, the agency aims to reduce delays and create a more consistent and efficient application process. The update comes as the commission is reportedly exploring a broader listing framework for spot crypto ETFs. SEC may be shaping official crypto ETF rulebook: report According to a recent X post by journalist Eleanor Terrett, the SEC is in the early stages of creating a formal listing standard for crypto ETFs. While details remain vague, the goal, per the report, is to create a faster, more predictable path for launching new ETFs, potentially simplifying the application process for tokens that meet key requirements. If pursued, the framework could allow qualifying ETFs to skip the current 19b-4 rule change process. Instead, issuers would file a standard S-1 and wait 75 days before listing, significantly reducing the usual back-and-forth. Factors likely to come into play include market cap, trading volume, and liquidity, However, with the framework still in early discussions, it remains to be seen what the final criteria will be. Read more: SEC approves conversion of Grayscale’s crypto large-cap fund to an ETF

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