SEC Prioritizes Clearing Shutdown Backlog as Issuers Eye Faster ETF Approvals

SEC confirms filings move toward effectiveness after 20 days if no delaying amendments.

• Issuers can request acceleration or rely on Rule 430A for incomplete shutdown filings.
• Backlogged reviews continue in submission order, including proxies and Form 10s.

The Securities and Exchange Commission released new guidance on how issuers can move pending filings forward after the recent US government shutdown. The Division of Corporation Finance recorded more than 900 filings during the closure. The heavy volume created significant pressure on review teams. Issuers now want faster clearance, especially those preparing crypto exchange-traded funds.

Eric Balchunas, Senior ETF Analyst at Bloomberg, noted that the new guidance may help issuers activate filings sooner. He also said some crypto issuers who skipped the 8(a) step may try to move quickly. Bitwise remains the next expected filer in the crypto ETF queue. Hence, attention has shifted to how fast the process can unfold.

SEC put out some guidance where it looks like issuers can sort of speed up the effectiveness of filings in an effort to clear out some backlog. My guess is some of those crypto etfs that didnt do the 8a thing will try and push out as soon as they can. Bitwise XRP is due next up…

Updated Filing Pathways After Shutdown

The Commission confirmed that filings without delaying amendments move toward effectiveness after 20 days. The timeline follows Section 8(a) rules. The SEC reminded issuers to keep disclosures accurate because the responsibility remains unchanged.

Additionally, the Division said issuers can still rely on Rule 430A if they omitted certain prospectus details during the shutdown. The agency will not take enforcement action in those cases. This update helps issuers who filed incomplete documents during the closure.

The SEC also explained that companies may request acceleration if they add delaying amendments before the 20-day window ends. This option gives issuers control over launch timing.

Moreover, the staff confirmed that post-effective amendments filed during the shutdown will move forward unless issuers object. Companies that need extra time must contact their industry office immediately.

Related: SEC Moves Closer to Approving ETF Share Classes for Mutual Funds

Backlogged Reviews Continue in Filing Order

The Division said it will review pending documents in the order received. This point includes materials submitted during the shutdown. Companies that filed preliminary proxy statements can now submit final versions if the 10-day period ended. However, reviews will continue for those already flagged before the shutdown.

The SEC also confirmed that Form 10 filings still become effective after 60 days. Companies must then maintain regular reporting schedules. Staff may review later reports if needed. Besides that, issuers who received no review notice before the shutdown may now request accelerated effectiveness.