The U.S. Securities and Exchange Commission (SEC) has issued new guidelines for cryptocurrency-based Exchange Traded Products (ETPs), aiming to strengthen regulatory clarity. This measure is intended to enhance investor protection by specifying disclosure requirements, Net Asset Value (NAV) calculation methods, custody structures, and conflict of interest procedures. As the intersection between cryptocurrencies and traditional finance expands, the SEC's move is expected to be a key turning point in supporting broader institutional acceptance.
The guidelines published by the SEC on July 1st comprehensively cover key aspects of cryptocurrency asset ETP operations. From NAV calculation methods to benchmark selection criteria, custody service contracts, governance structures, and conflict of interest prevention measures, clear standards have been established for each issue. According to the announcement, issuers must comply with registration obligations under the 1933 Securities Act and 1934 Securities Exchange Act, and anti-fraud provisions will also apply. However, the cryptocurrency ETPs discussed are not subject to the 1940 Investment Company Act.
The market views this guideline announcement as timely, as institutional funds have been flowing into cryptocurrency-based financial products like Bitcoin (BTC) spot ETFs, increasing demand for related regulations. Particularly as major asset management firms continue to introduce related products, the SEC aims to promote market stability through strengthening AML/KYC reporting systems and establishing risk management standards.
The announcement also includes ETP issuance purposes, benchmark tracking methods, issuer authorities, private key management principles, and guidelines for handling hard forks and airdrops. It comprehensively addressed exchange liquidity, cybersecurity, technical configurations, and tax and regulatory risks. The SEC specified the responsibilities of directors and key executives as core components of internal control functions.
The SEC is expected to accelerate the development of a 'standardized listing procedure' that could exempt the 19b-4 submission process requiring individual reviews in cooperation with exchanges. If conditions are met, the market can more quickly introduce innovative products, potentially transforming the typical 75-day ETP review period into automatic listing without regulatory approval.
This guideline is seen as an institutional counterbalance towards cryptocurrency industry maturity and an opportunity to restore trust between regulatory authorities and the market. The SEC emphasized that it will "protect investors, create fair markets, and promote capital formation while respecting the innovation of digital asset-based finance." As a prerequisite for cryptocurrency assets to become mainstream financial tools, the need for a clear regulatory framework continues, and this announcement is expected to have significant industry-wide implications.
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