Thinking of launching a crypto ETF? The SEC just made the rulebook clearer. On July 01, 2025, the U.S. Securities and Exchange Commission (SEC) issued new guidance outlining exactly what crypto ETF issuers need to disclose. This is big news for fund managers, crypto investors, and even the average holder. With the new rules in place, here is why it matters for the issuers.
What’s New in the SEC’s Crypto ETF Guidance?
First and foremost, the SEC is not banning crypto ETFs, but they are demanding a more transparent structure and risk disclosure from issuers. All crypto ETPs (exchange-traded products) must now be registered under the Securities Act of 1933 and the Exchange Act of 1934, just like traditional funds. However, they’re not subject to the Investment Company Act of 1940, which regulates mutual funds.
Considering the regulatory middle ground, here are what issues now required to be disclosed:
Custody & Security Measures: The SEC wants to know exactly who is holding your crypto. Is it stored in hot or cold wallets? Who controls the private keys? Is there insurance? These questions must be answered in your filing. This is to protect investors from hacks, theft, or poor custodial practices—something crypto hasn’t always been great at.
Pricing & Net Asset Value (NAV): No more vague or inconsistent valuation. Issuers need to spell out how their crypto ETF calculates its NAV, including which exchanges it pulls pricing data from, how it handles price discrepancies, and how closely the fund tracks its benchmark. This helps avoid surprises during market volatility.
Conflicts of Interest & Governance: Transparency is key. The SEC wants detailed info on who’s running the ETF, their relationships with the service providers, and any potential conflicts of interest. This includes fees, related-party transactions, and governance structures, ensuring the fund’s managers act in the best interest of investors.
Why This Matters
With over $2.7 billion flowing into crypto ETPs recently, the SEC is sending a message: crypto isn’t a free-for-all anymore. They’re giving issuers a path forward, but with guardrails.