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SEC Issues New Guidance for Disclosing ETPs

By  |  July 7, 2025

The U.S. Securities and Exchange Commission (SEC) has issued new guidance regarding disclosures for cryptocurrency-based exchange-traded products (ETPs), a move widely seen as a precursor to a broader wave of approvals for crypto ETFs. According to Reuters, this development marks a notable change in the SEC’s approach to regulating digital assets under its new Republican leadership.

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    The guidance, released last Tuesday, outlines how issuers must clearly explain—using straightforward, accessible language—the unique features of cryptocurrency ETFs. This includes detailed disclosure of custody solutions, liquidity challenges, and the fast-evolving nature of the crypto market. Per Reuters, industry stakeholders viewed the document as a positive and expected step in a regulatory process that has gained momentum in recent months.

    Matt Hougan, Chief Investment Officer at Bitwise Asset Management, highlighted the significance of the guidance itself, noting that the SEC’s decision to issue such a framework shows acknowledgment of crypto ETPs as a growing segment within mainstream financial products. Bitwise currently has more than six crypto ETF applications pending with the agency.

    While the guidance addresses current disclosure standards, insiders suggest the SEC is already preparing a more impactful update. According to Reuters, the agency is in discussions to standardize the listing process for crypto ETFs by introducing a universal template. This new approach would eliminate the need for exchanges to submit a custom request each time they want to list a new crypto product.

    Related: ECB Seeks Faster Digital Euro Legislation Amid US Stablecoin Push

    Sources familiar with these confidential talks told Reuters that the SEC and exchanges are negotiating the exact language of the new template. One executive from a major ETF issuer indicated that the revised submission process could be unveiled within “days or weeks.”

    Officials from Nasdaq and Cboe declined to comment on the discussions, while the New York Stock Exchange and the SEC did not respond to inquiries regarding the ongoing negotiations.

    This shift in policy comes amid a broader transformation within the SEC’s crypto oversight strategy. The agency has reportedly reorganized its enforcement division, scaled back or withdrawn from several high-profile crypto-related cases, and formed a task force to draft new regulations. According to Reuters, these moves suggest a significant recalibration in how the SEC engages with the digital asset sector.

    As the regulatory path becomes clearer, industry experts believe the next wave of approved ETFs will likely focus on Solana, currently ranked the sixth-largest cryptocurrency globally. Other products awaiting approval are linked to a range of digital tokens, including XRP, Dogecoin, Polkadot, and even a meme coin associated with former President Donald Trump.

    Source: Reuters