SEC Shakes Up Crypto ETFs: 19b-4 Withdrawal Sparks October Shockwave

SEC Crypto ETF Filings 19b-4 Withdrawal: A Step Toward Faster Approvals or Another Delay?

The U.S. Securities and Exchange Commission (SEC) has once again shaken the cryptocurrency investment landscape with a procedural shift that could accelerate, rather than delay, the long-awaited approval of spot crypto exchange-traded funds (ETFs).

In recent days, speculation has run high after financial journalist Eleanor Terrett posted on X (formerly Twitter) that the SEC had requested issuers of several spot crypto ETFs to withdraw their 19b-4 filings. At first glance, the move appeared to signal a potential setback for funds tied to major digital assets such as Litecoin (LTC), Ripple’s XRP, Solana (SOL), Cardano (ADA), and Dogecoin (DOGE).

Source: X

But according to analysts and industry observers, this is not a retreat. Instead, it represents a structural change in how the SEC intends to handle crypto ETF approvals, ushering in what some are calling a new era of regulatory streamlining.

Why the Withdrawal May Not Be Bad News

Traditionally, ETF issuers had to file under Section 19b-4 of the Securities Exchange Act for every fund seeking approval. The process was often slow, heavily scrutinized, and vulnerable to repeated delays as the SEC extended deadlines for review. For crypto investors, this meant enduring months of uncertainty and speculation before receiving any decision.

The withdrawal request, however, reflects the SEC’s adoption of recently approved generic listing standards. These new rules are designed to simplify the process by eliminating the need for individual approvals for every single security. Instead, issuers will now primarily file S-1 registration statements, a shift expected to reduce procedural delays and open the door to faster market launches.

“This is a procedural update, not a setback,” Terrett explained. “The SEC is moving issuers to the new system, which makes approvals more efficient. Investors should not confuse this with rejection.”

Understanding the Generic Listing Standards

Two weeks ago, the SEC formally approved generic listing standards, a rule change that analysts say could reshape the way ETFs are introduced to the market. Under these guidelines:

• Exchanges no longer need to submit a 19b-4 filing for each crypto asset.

• Tokens that meet the commission’s criteria can be listed through a standard S-1 filing.

• The SEC retains the flexibility to approve any fund at any time, regardless of previous deadlines.

For issuers and investors alike, this represents a significant leap toward efficiency. Nate Geraci, president of The ETF Store, called the development “enormous,” noting that the adoption of generic listing standards “removes one of the biggest barriers standing in the way of crypto ETFs.”

The Deadlines That No Longer Matter

Before this shift, investors were closely tracking a series of SEC deadlines for crypto ETF applications scheduled for October 2025. These included:

Source: X

• October 2: Canary’s Litecoin Traded Fund

• October 10: Grayscale’s Solana and Litecoin Trusts

• October 24: WisdomTree’s XRP Fund

Under the old framework, missing or delaying these deadlines could have rattled markets and dampened investor enthusiasm. With the adoption of the generic listing standards, however, these rigid timelines have effectively lost their significance. The SEC can now move forward with approvals at any point, giving regulators more flexibility while reducing market uncertainty.

Why This Matters for Crypto Investors

For crypto investors, the implications are profound. The withdrawal of the 19b-4 filings signals that the SEC is pivoting toward a more modernized approval process, which could bring several benefits:

Faster Approvals: ETFs may launch more quickly without the bureaucratic bottlenecks of the old system.

Source: X

Reduced Uncertainty: Investors will no longer be left waiting anxiously for deadline extensions or rejections.

Market Flexibility: The SEC can respond dynamically, approving funds that meet its standards without being tied to strict timelines.

This shift could provide a crucial boost to liquidity in the cryptocurrency market, particularly for assets like LTC, XRP, SOL, ADA, and DOGE, which have long been on the sidelines of institutional adoption.

Analysts Divided, But Optimism Rising

Not all experts agree that the transition will be seamless. Some warn that even under the new framework, the SEC still has broad discretion to delay or reject applications if it deems the market structure insufficiently robust. Regulatory uncertainty, particularly regarding custody and market surveillance, remains a key issue.

Still, the majority of analysts believe the adoption of generic listing standards is a step in the right direction. Onur, a market commentator who closely follows ETF developments, noted that “investors should see this as a sign of maturity in the SEC’s approach, not a roadblock.”

He added that the procedural change may even accelerate approvals compared to previous expectations, potentially paving the way for multiple crypto ETFs to hit the market before the end of 2025.

A Milestone Month for ETFs

October was already expected to be a defining month for cryptocurrency ETFs, with multiple applications awaiting decisions. The procedural shift only heightens the anticipation.

“October is going to be enormous for crypto ETFs,” Geraci said. “This change confirms that the market is moving toward a more streamlined and investor-friendly system.”

The SEC’s evolving stance comes at a time when institutional demand for crypto exposure is on the rise. The success of Bitcoin ETFs earlier this year demonstrated that regulated investment vehicles can attract billions of dollars in inflows, offering investors exposure to digital assets without the complexities of direct ownership.

If the same momentum carries over to funds tied to alternative cryptocurrencies such as Ethereum, Solana, or XRP, it could mark a major turning point in the broader adoption of digital assets.

The Bigger Picture

Beyond the procedural details, the SEC’s decision underscores a larger trend: the gradual integration of digital assets into the traditional financial system. By shifting to generic listing standards, regulators are signaling a willingness to adapt to the realities of a fast-evolving market.

For issuers, the new rules mean fewer hurdles and clearer guidelines. For investors, they offer greater confidence that the crypto ETF market is here to stay. And for the SEC, the change provides more flexibility to oversee the market without being bound by outdated regulatory structures.

As crypto markets remain volatile, the promise of regulated ETFs tied to major tokens offers a measure of stability. By creating investment vehicles that fit within the existing regulatory framework, the SEC is laying the groundwork for a more mature and institutionalized digital asset market.

Conclusion

The withdrawal of the 19b-4 filings should not be seen as a delay or rejection but as a procedural shift that reflects the SEC’s evolving approach to cryptocurrency regulation. With generic listing standards now in place, the path for crypto ETFs looks clearer and potentially faster than ever before.

For investors eyeing Litecoin, XRP, Solana, Cardano, or Dogecoin, this could be a pivotal moment. Rather than slowing down, the SEC may be accelerating the integration of digital assets into the financial mainstream.

The bottom line is that the cryptocurrency ETF revolution is far from stalled—it is gathering speed. And as the SEC adapts its processes, the next wave of approvals could be just around the corner.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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