What SEC’s 19b-4 Removal Means for Crypto ETF Launches

In a surprise move, the  U.S. Securities and Exchange Commission (SEC) approved generic listing standards for ETPs (Exchange-Traded Products). The maneuver will enable exchanges to list commodity-based ETFs, such as crypto-backed projects, without requiring individual approval if certain criteria are met.

This decision opens the door for several pending ETFs to reduce their approval time and creates a more transparent regulatory climate for future ventures. Analysts describe it as a technical streamlining step.

The move eliminates many of the delays that continue to plague crypto ETF approvals. At the same time, it introduces a transparent legal framework for crypto products, which should help to drive innovation moving forward. Here’s what you need to know.

Self-Regulatory Organizations (SROs)

To fully grasp the importance of this ruling, you first need to understand the role of SROs (Self-Regulatory Organizations) in the market. These groups act as privately operated regulators designed to provide oversight and to keep industries held to certain standards.

SROs are responsible for creating rules that market participants must adhere to, including protections against fraud and illegal activities. As such, they are a vital part of multiple industries where they provide rulings that nurture creativity while still ensuring consumers remain protected from fraudulent activities.

Despite their private nature, SROs are subject to specific government regulations. Every new ruling or change to their requirements must get approval from the government. For example, all bylaws, rules, and regulations must be filed with the SEC, which has the power to veto the decision if it doesn’t fall in line with its requirements.

If approved, the SEC will file the motion for public recordkeeping. This structure ensures that new products can reach the market while still keeping the public shielded from bad actors. It also reduces the workload on the SEC and ensures that industry professionals have a say in the regulatory climate of their respective markets.

Major Self-Regulatory Organizations (SROs)

There are several high-level SROs in operation today. These organizations include financial regulatory bodies, stock exchanges, and other key protective groups. Here are just a few SROs that hold a lot of power in the markets today:

• The American Institute of Certified Public Accountants (AICPA)
• Depository Trust & Clearing Corporation (DTCC)
• The Fixed Income Clearing Corporation (FICC)
• The New York Stock Exchange (NYSE)
• The Options Clearing Corporation (OCC)
• The Chicago Board of Trade (CBOT)
• The Municipal Securities Rulemaking Board
• The Financial Industry Regulatory Authority (FINRA)

Why SROs Matter in Financial Markets

The main reason to utilize SROs is to provide some form of governance from within the sector. This strategy works because industry professionals have a better understanding of what types of regulations will not hinder innovation and enable the market to continue to expand and generate revenue.

How are SROs Formed?

There are several ways to form an SRO. In some instances, the government will require the industry to create one. In other cases, an agreement between businesses within the industry drives the creation of the group. The latter is more common as it enables the group to regulate business flow.

What Form 19b-4 Does—and What Just Changed

Form 19b-4 is the mechanism SROs (such as exchanges) use to propose rule changes to the SEC; under the new generic listing standards, qualifying crypto-commodity ETPs can list without a product-specific Form 19b-4 each time. This form is how SROs notify the SEC of any potential changes to their regulations. Traditionally, the asset issuer and the exchange would collaborate. Then the exchange would put forth a proposal for review.

The form includes critical details such as the reason for the updated rules and how they will affect the market. Traditionally, exchanges needed to submit both a 19b-4 and an S-1 filing. In the filing, they include crucial details and justification for the new rule or product.

Source – SEC

This step includes demonstrating how the decision helps to promote a fair market and correlates to current trading rules. Additionally, they must lay out how investors remain protected after the change and how the updates will fall into the current oversight structure. Notably, you can see all 19b-4 filings on the SEC’s Electronic Document Gathering, Analysis, and Retrieval (EDGAR) system.

SEC Review Period

Once the application is received, the SEC review period begins. This process can take up to 240 days if requests for extensions occur. Notably, any errors or misrepresented data will result in instant rejection by the SEC. Notably, the group has repeatedly hesitated on crypto products in the past, citing a lack of market data.

Public Opinion Period

The SEC will also notify the public and take their opinions into consideration. During the public opinion stage, anyone can put forth arguments in favor of or in opposition to the changes. The SEC carefully reviews public opinion and considers it when approving or denying changes.

What Does this Ruling Mean for the Current Crop of Crypto ETF Applications?

The SEC’s approval of generic listing standards means exchanges can list and trade qualifying crypto-commodity ETPs without submitting a product-specific 19b-4 rule change. Issuers still file an S-1 (or similar) registration statement, but the exchange no longer needs a separate 19b-4 for each ETF that fits the generic criteria. This significantly lowers the regulatory hurdles to launching spot crypto ETFs.

The use of generic listing standards gets rid of the previous need to submit individual 19b-4 filings for each cryptocurrency ETF proposal. Now, companies only need to file the S-1, detailing the key aspects of their ETF, like its structure.

Following approval of generic standards, several exchange-filed 19b-4 proposals have been withdrawn or re-aligned to the new framework (for example, NYSE Arca’s Truth Social dual-asset ETF filing was marked withdrawn on September 23, 2025). Specifically, these ETFs include products for XRP, Litecoin (LTC), Cardano (ADA), Solana (SOL), and Dogecoin (DOGE).

Faster ETF Approvals Under New Rules

The main benefit of the standardized approach is that it will enable companies to get faster approval for their products. The new guidelines and framework give detailed instructions on how to get your crypto products approved for the first time, opening the door for more market participation.

Regulatory Clarity

There are many in the crypto industry that applaud this maneuver because it provides regulatory clarity, creating a more streamlined and informed approval process. This decision will also help to drive further institutional investment into the blockchain economy, which has long awaited further transparency.

Other Benefits of the Ruling

There are several other benefits that this ruling brings to the market. For one, it reduces redundancy across the industry. The S-1 form can now relay all the relevant data needed for regulators to make an approval decision. This lowers the regulatory workload for both issuers and regulators.

Future Innovation

At the core of the SEC’s decision is the desire not to stifle innovation. Governments around the world are now seeking to ensure their country has a foothold in the blockchain economy. The SEC’s latest ruling helps to provide stability to the US market, which should help to deepen investments.

Expand the Market

This ruling will make it easier for projects other than Bitcoin and Ethereum to offer ETFs. Already,  major coins like Solana, XRP, Litecoin, Cardano, and Dogecoin have products ready for launch. This added diversity provides investors with more options, enabling a more robust portfolio.

Lower Legal Costs

Another major benefit of the ruling is that companies won’t have to spend extra time attempting to comply with confusing crypto regulations. With regulatory clarity comes lower legal costs as companies can now stick to the framework without worrying about blowback at a later date.

Current Pending ETFs

There are many crypto ETFs awaiting SEC action. These filers are transitioning to the new framework, and some exchange 19b-4 proposals are being withdrawn or converted. Below are notable applications and their approval deadlines:
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Harmonize Crypto Regulations

This decision is part of a larger push by the SEC to create a uniform approach to cryptocurrencies across agencies. This maneuver is crucial to the future of the market as it removes friction from the launch process. Also, the SEC’s desire to achieve regulatory coordination demonstrates market maturation.

SEC’s Generic Listing Standards for Crypto ETPs | Conclusion

This ruling falls in line with the recent pivot by regulators towards the blockchain economy. Over the last 5 years, the U.S. has seen its crypto industry flourish. This latest decision to endorse generic listing rules will directly speed up digital asset ETF launches and open the door for more advantageous financial products in the future. Consequently, it’s seen as a big win for blockchain advocates.

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