Key Developments From the SEC's Project Crypto: Additional Katten Thought Leadership

The Katten Financial Markets and Funds team is dedicated to keeping you informed about the latest legal and regulatory changes related to the Securities and Exchange Commission's (SEC) Project Crypto. This post will be frequently updated to provide a brief summary and links to news, client advisories, bylined articles, and more from Katten. 

For a brief summary and links to the latest announcements coming from the SEC and related regulatory bodies, visit Katten's Key Developments From the SEC's Project Crypto: Regulatory Updates post.

For further analysis, visit Katten's Quick Reads center for Key Developments From the SEC's Project Crypto.

SEC Approves In-Kind Creation and Redemption for Crypto Exchange-Traded Products

Date: 8/11/25

On July 29, 2025, the SEC approved in-kind creations and redemptions for crypto-based ETPs, allowing authorized participants to exchange actual bitcoin or ether for shares rather than cash—aligning crypto products with traditional commodity-based ETP practices. This policy shift promises to slash costs, boost tax efficiency, and enhance operational flexibility for issuers and investors alike.

Read the full advisory here.

James Brady Discusses SEC Openness to Crypto ETP Approvals

Date: 7/10/25

On July 10, 2025, Katten's Financial Markets and Funds Partner James Brady noted that the SEC’s guidance has illuminated previously “unwritten rules” around disclosures—specifically, the requirement to list authorized participants and third-party service providers in crypto ETP filings. He interprets this move as a clear signal that the agency may approve many new crypto asset ETPs in the next 6–12 months, thanks to a more consistent, fully disclosed filing framework.

Read the full article here.