SEC Filing Document

Company: T. Rowe Price Active Crypto ETF
Ticker: 
CIK: 2089855
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0001999371-26-010860
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2089855/000199937126010860/tknz-s1a_051526.htm

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security under the federal securities laws depends on whether it is included in the lists of instruments making up the definition of “security” in the Securities Act, the Exchange Act, and the Investment Company Act. Crypto assets as such do not appear in any of these lists, although each list includes the terms “investment contract” and “note,” and the SEC has typically analyzed whether a particular crypto asset is a security by reference to whether it meets the tests developed by the federal courts interpreting these terms, known as the Howey and Reves tests, respectively. Adding to the complexity, the SEC staff has indicated that the security status of a particular crypto asset can change over time as the relevant facts evolve and that a crypto asset that is otherwise not a security but is offered and sold as part of an investment contract may form part of a security.

As part of determining whether a crypto
asset is a security for purposes of the federal securities laws, the Sponsor considers a number of factors, including the various definitions
of “security” under the federal securities laws, as well as SEC guidance and enforcement actions. The Sponsor may also refer
to the inclusion of a crypto asset in the Index since the eligibility rules of the FTSE Crypto US Listed Index state that Index Constituents
must meet the generic listing standards that require that the asset be a commodity. Through this process the Sponsor believes that it
is applying the proper legal standards in determining that the Eligible Assets are not securities. In light of these uncertainties and
the fact-based nature of the analysis, the Sponsor acknowledges that an Eligible Asset may in the future be found by the SEC or a federal
court to be a security notwithstanding the Sponsor’s prior conclusion; and the Sponsor’s prior conclusion, even if reasonable
under the circumstances and made in good faith, would not preclude legal or regulatory action based on the presence of a security.

Any enforcement action by the SEC
or a state securities regulator asserting that any of the Eligible Assets is a security or is being offered and sold as a security, or
a court decision, to that effect would be expected to have an immediate material adverse impact on the trading value of such crypto asset,
as well as the Shares. The Fund may be required to liquidate or be subject to regulatory action. The value of such crypto asset may significantly
decline because the business models behind most crypto assets are incompatible with regulations applying to transactions in securities.
If a crypto asset is determined or asserted to be a security, it is likely to become difficult or impossible for the crypto asset to be
traded, cleared or custodied in the United States through the same channels used by non-security crypto assets, which in addition to materially
and adversely affecting the trading value of the crypto asset is likely to significantly impact its liquidity and market participants’
ability to convert the crypto asset into U.S. dollars.

In addition, if crypto assets are
determined to be securities, the Fund could be considered an unregistered “investment company” under SEC rules, which could
necessitate the Fund’s liquidation. In this case, the Fund and the Sponsor may be deemed to have participated in an illegal offering
of securities and there is no guarantee that the Sponsor will be able to register the Fund under the Investment Company Act at such time
or take such other actions as may be necessary to ensure the Fund’s activities comply with applicable law, which could force the
Sponsor to liquidate the Fund.

The Sponsor may terminate and liquidate
the Fund if the Sponsor determines certain crypto assets critical to the performance Fund are securities under the federal securities
laws, whether that determination is initially made by the Sponsor itself, or because the SEC or a federal court subsequently makes that
determination. Moreover, whether or not the Sponsor or the Fund were subject to additional regulatory requirements as a result of any
SEC or federal court determination that its assets include securities, the Sponsor may nevertheless decide to terminate the Fund, in order,
if possible, to liquidate the Fund’s assets while a liquid market still exists.

Because the Fund is actively-managed,
the Sponsor may determine to liquidate the particular asset(s) that may be subject to a change in classification and continue with other
Eligible Assets. If the Sponsor believes there to be good faith grounds to conclude that there are sufficient Eligible Assets to carry
out its objective that are not securities, the Sponsor does not intend to dissolve the Fund on the basis that a particular crypto asset
could at some future point be determined to be a security.

A determination that the Eligible
Assets is not a commodity under the CEA may adversely affect the value of the Shares, and result in potentially extraordinary, nonrecurring
expenses to, or termination of, the Fund

The SEC’s release on generic
listing standards for crypto exchange-traded products specifically notes that the generic listing standards apply to a trust that holds
“one or more commodities or commodity-based assets”, and states that the term “commodity” means any commodity
as defined in Section 1a(9) of the CEA that is not an “excluded commodity” under Section 1a(19) of the CEA. Accordingly, the
Fund requires that any Eligible Asset be a “commodity.”

In determining whether a crypto asset
is a commodity and is not an “excluded commodity,” the Sponsor will begin by referencing the definitions of commodity and
excluded commodity under the CEA, and the definition of a “security” under the federal securities laws, and considers interpretative
materials such as rules, caselaw, guidance, and enforcement actions. The Sponsor may also classify a crypto asset to be a commodity if
it meets the following criteria:

●	it is fungible and

●	it is not presently a security under federal securities laws or it is either presently traded in futures
contracts that are not subject to the jurisdiction of the SEC, or could be traded in such contracts in the future.

In the event a crypto asset is found
to be a commodity under the CEA and to not be an excluded commodity under the CEA, the Fund will then apply the asset eligibility criteria
discussed herein to determine whether the crypto asset is an Eligible Asset.

The Sponsor acknowledges that one
or more crypto assets may in the future be found by the CFTC or a federal court to not be a commodity or to be an excluded commodity under
the CEA notwithstanding the Sponsor’s prior classification. Even if the Sponsor’s prior classification was reasonable under
the circumstances and made in good faith, the Fund and Sponsor may nevertheless be subject to legal or regulatory action. Because the
Fund is actively-managed, the Sponsor may determine to liquidate the particular asset(s) that may be subject to a change in classification
and continue the Fund with other Eligible Assets. The Sponsor may terminate and liquidate the Fund if the Sponsor determines certain crypto
assets critical to the performance Fund do not meet the regulatory requirements.

The lack of regulation of the
crypto asset market causes vulnerabilities to the markets and may impact prices

The Eligible Assets, the Eligible
Asset Networks and the crypto asset trading platforms are relatively new and, in many cases, either unregulated or not in compliance with
some or all of the applicable laws and regulations. As a result of this lack of regulation, individuals, or groups may engage in insider
trading, fraud or market manipulation with respect to the Eligible Assets. Such manipulation could cause investors in the Eligible Assets
to lose money, possibly the entire value of their investments. Over the past several years, a number of crypto platforms have been closed
due to fraud, failure or security breaches. The nature of the assets held at crypto platforms make them appealing targets for hackers
and a number of crypto platforms have been victims of cybercrimes and other fraudulent activity. These activities have caused significant,
in some cases total, losses for crypto asset investors. Investors in crypto assets may have little or no recourse should such theft, fraud
or manipulation occur. There is no central registry showing which individuals or entities own crypto assets or the quantity of crypto
assets that is owned by any particular person or entity. There are no regulations in place that would prevent a large holder of crypto
assets or a group of holders from selling their crypto assets, which could depress the price of such assets, or otherwise attempting to
manipulate the price of such crypto assets or their networks. Events that reduce user confidence in the Eligible Assets, the Eligible
Asset Networks and the fairness of crypto platforms could have a negative impact on the price of the Eligible Assets and the value of
an investment in the Fund.