SEC asked issuers to withdraw XRP, LTC, SOL, ADA, and DOGE ETF filings under new listing rules

Source Cryptopolitan

The U.S. Securities and Exchange Commission (SEC) has requested that issuers of exchange-traded funds related to XRP, Litecoin (LTC), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) withdraw pending 19b-4 filings.

Journalist Eleanor Terrett reported the change, stating that the recent approval of generic listing standards by the regulator eliminates the need for individual filings, thereby clearing the path to approval.

These standards are a replacement for the old case-by-case review under Section 19(b) of the Securities Exchange Act. Instead of waiting up to 240 days for a decision, issuers can now rely on predetermined requirements. Exchanges that meet these criteria can proceed directly to the listing process, significantly reducing the overall process. Terrett stressed that this development is a sign that the new framework is working as it is supposed to.

Faster approvals and simplified procedures

Under the new rules, commodity-based ETFs, including those that are linked to cryptocurrencies, can be listed provided they meet eligibility criteria such as having futures contracts under the jurisdiction of the Commodity Futures Trading Commission (CFTC). With this model, the SEC effectively minimizes delays associated with filing reviews and with withdrawal notices. 

The final SEC deadlines for some crypto ETF decisions under the 19b-4 process start this month, including for XRP, SOL, and Dogecoin. Crypto issuers such as Fidelity and Franklin Templeton are now modifying their applications accordingly. Additionally, the Issuers are expected to start taking their older submissions back within days.

According to market analysts, the generic listing framework will spur a wave of new spot cryptocurrency ETFs. Unlike earlier filings, which required scrutiny by an individual, the new process brings efficiency while ensuring compliance protection.

Political risks cloud the timeline

Even with the streamlined system, there is uncertainty. Bloomberg analyst James Seyffart cited the impending government shutdown in the US as a possible roadblock. This rule’s effective date falls within the window of time during which the SEC may begin accepting applications for the rule’s waivers, raising questions about staffing and decision-making capacity.

Seyffart’s colleague Eric Balchunas added that it’s not clear yet when these ETFs will launch. With prospectuses being filed months ahead of time, the timing of approval now hinges on the Division of Corporation Finance of the SEC, not statutory deadlines.

To add to further uncertainty in the near term, Polymarket’s prediction market signals a 69% likelihood of a shutdown by October 1. The budget negotiations have already held up the discussion of the CLARITY Act, another crypto-related bill.

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