SEC Filing Document

Company: T. Rowe Price Active Crypto ETF
Ticker: 
CIK: 2089855
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-10-22
Accession Number: 0001999371-25-015832
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937125015832/activecrypto-s1_102225.htm

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issues concerning crypto assets and demonstrate a legislative intent to develop and consider the adoption of federal legislation designed to address the perceived need for regulation of and concerns surrounding the crypto industry. In 2023, Congress continued to consider several stand-alone crypto asset bills, including a formal process to determine when crypto assets will be treated as either securities to be regulated by the SEC or commodities under the purview of the CFTC, what type of federal/state regulatory regime will exist for payment stablecoins and the how the BSA will apply to cryptocurrency providers. On May 21, 2024, the Financial Innovation and Technology for the 21st Century Act (FIT21) advanced through the United States House of Representatives in a vote along bipartisan lines. However, the extent and content of any forthcoming laws and regulations are not yet ascertainable with certainty, and it may not be ascertainable in the near future.

•	President Biden’s March 9, 2022 Executive Order, asserting that technological advances and the rapid
growth of the crypto asset markets “necessitate an evaluation and alignment of the United States Government approach to crypto assets,”
signals an ongoing focus on crypto asset policy and regulation in the United States. On January 23, 2025, an executive order was issued
titled “Executive Order on Strengthening American Leadership in Digital Financial Technology” that outlined the administration’s
commitment to strengthening U.S. leadership in the crypto asset space and established an inter-agency working group for artificial intelligence
and crypto that is tasked with proposing a regulatory framework governing the issuance and operation of crypto assets, including stablecoins,
in the United States. On July 30, 2025, the President’s Working Group on Digital Asset Markets released its report recommending,
among other things that

•	Congress enact legislation that:

▪	Eliminates existing gaps in regulatory oversight by providing the CFTC authority to oversee spot markets
for non-security crypto assets.

▪	Embraces DeFi technology and recognizes the potential of integrating such technology into mainstream finance.

•	The SEC and CFTC use their existing authorities to:

▪	Immediately enable the trading of crypto assets at the Federal level by providing clarity to market participants
on issues such as registration, custody, trading, and recordkeeping.

▪	Allow innovative financial products to reach consumers without bureaucratic delays through the use of
tools like safe harbors and regulatory sandboxes.

It is not possible to predict whether,
or when, any of these developments will lead to Congress granting additional authorities to the SEC or other regulators, what the nature
of such additional authorities might be, how additional legislation and/or regulatory oversight might impact the ability of crypto asset
markets to function or how any new regulations or changes to existing regulations might impact the value of crypto assets held by the
Fund. The consequences of increased federal regulation of crypto assets and crypto asset activities could have a material adverse effect
on the Fund and the Shares.

FinCEN requires any administrator or
exchanger of convertible crypto assets to register with FinCEN as a money transmitter and comply with the anti-money laundering regulations
applicable to money transmitters. Entities which fail to comply with such regulations are subject to fines, may be required to cease operations,
and could have potential criminal liability. For example, in 2015, FinCEN assessed a $700,000 fine against a sponsor of a crypto asset
for violating several requirements of the Bank Secrecy Act by acting as an MSB and selling the crypto asset without registering with FinCEN,
and by failing to implement and maintain an adequate anti-money laundering program. In 2017, FinCEN assessed a $110 million fine against
BTC-e, a now defunct crypto asset exchange, for similar violations. The requirement that exchangers that do business in the U.S. register
with FinCEN and comply with anti-money laundering regulations may increase the cost of buying and selling crypto assets and therefore
may adversely affect the price of the Eligible Assets and an investment in the Shares.

The Office of Foreign Assets Control
(OFAC) of the U.S. Department of the Treasury has added digital currency addresses to the list of Specially Designated Nationals whose
assets are blocked, and with whom U.S. persons are generally prohibited from dealing. Such actions by OFAC, or by similar organizations
in other jurisdictions, may introduce uncertainty in the market as to whether crypto assets that have been associated with such addresses
in the past can be easily sold. Reduced fungibility in the crypto asset markets may reduce the liquidity of the Eligible Assets and therefore
adversely affect their price.

In February 2020, then-U.S. Treasury
Secretary Steven Mnuchin stated that crypto assets were a “crucial area” on which the U.S. Department of the Treasury has
spent significant time. Secretary Mnuchin announced that the U.S. Department of the Treasury is preparing significant new regulations
governing crypto asset activities to address concerns regarding the potential use for facilitating money laundering and other illicit
activities. In December 2020, FinCEN, a bureau within the U.S. Department of the Treasury, proposed a rule that would require financial
institutions to submit reports, keep records, and verify the identity of customers for certain transactions to or from so-called “unhosted”
wallets, also commonly referred to as self-hosted wallets. In January 2021, U.S. Treasury Secretary nominee Janet Yellen stated her belief
that regulators should “look closely at how to encourage the use of crypto assets for legitimate activities while curtailing their
use for malign and illegal activities.”

Under regulations from the New York
State Department of Financial Services (NYDFS), businesses involved in crypto asset business activity for third parties in or involving
New York, excluding merchants and consumers, must apply for a license, commonly known as a BitLicense, from the NYDFS and must comply
with anti-money laundering, cyber security, consumer protection, and financial and reporting requirements, among others. As an alternative
to a BitLicense, a firm can apply for a charter to become a limited purpose trust company under New York law qualified to engage in certain
crypto asset business activities. Other states have considered or approved crypto asset business activity statutes or rules, passing,
for example, regulations or guidance indicating that certain crypto asset business activities constitute money transmission requiring
licensure.

The inconsistency in applying money
transmitting licensure requirements to certain businesses may make it more difficult for these businesses to provide services, which may
affect consumer adoption of crypto assets and its price. In an attempt to address these issues, the Uniform Law Commission passed a model
law in July 2017, the Uniform Regulation of Virtual Currency Businesses Act, which has many similarities to the BitLicense and features
a multistate reciprocity licensure feature, wherein a business licensed in one state could apply for accelerated licensure procedures
in other states. It is still unclear, however, how many states, if any, will adopt some or all of the model legislation.

Law enforcement agencies have often
relied on the transparency of blockchains to facilitate investigations. However, certain privacy-enhancing features have been, or are
expected to be, introduced to a number of crypto asset networks. If the Eligible Assets Networks were to adopt any of these features,
these features may provide law enforcement agencies with less visibility into transaction-level data. Europol, the European Union’s
law enforcement agency, released a report in October 2017 noting the increased use of privacy-enhancing crypto assets like Zcash and Monero
in criminal activity on the internet. Although no regulatory action has been taken to treat privacy enhancing crypto assets differently,
this may change in the future.

As crypto assets have grown in both
popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including the FinCEN, SEC, CFTC, FINRA,
the CFPB, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, and state financial
institution regulators) have been examining the crypto networks and the crypto asset users, with particular focus on the extent to which
crypto assets can be used to launder the proceeds of illegal activities or criminal or terrorist enterprises and the safety and soundness
of exchanges or other service providers that hold tokens for users. The imposition of stricter governmental regulation of the crypto asset
market may adversely impact the activities of the Fund, for example, by reducing the liquidity of the Eligible Assets markets.

Legal status of crypto assets is
uncertain in various jurisdictions, which could impact the prices of crypto assets