SEC Clarifies Disclosure Rules for Crypto Asset ETPs

The U.S. Securities and Exchange Commission has issued new guidance on disclosure requirements for crypto asset exchange-traded products (ETPs), marking a significant step toward regulatory clarity in digital asset markets. The Division of Corporation Finance outlined how federal securities laws apply to these investment vehicles, which typically hold spot crypto assets or derivatives.

Crypto asset ETP issuers must now register offerings under the Securities Act of 1933 and securities classes under the Exchange Act of 1934. While not registered as investment companies, these products remain subject to federal anti-fraud provisions. The MOVE aims to enhance investor protection while maintaining efficient capital markets.

The regulatory clarity comes as institutional interest in crypto ETPs grows, particularly following the approval of Bitcoin futures products. Market participants view the guidance as a potential precursor to broader spot product approvals, though the SEC emphasized this statement doesn't constitute blanket endorsement of crypto securities offerings.