CCI Urges SEC to Streamline Novel ETP Approvals

The Crypto Council for Innovation (CCI) has urged the Securities and Exchange Commission (SEC) to streamline the approval process for novel exchange-traded products (ETPs).

In a proposal presented on August 31, CCI called for parity of tax treatment, disclosure requirements, and confidentiality for ETPs. The organization advocates for a modernized framework for ETP by the SEC, with clear criteria to help issuers understand the approval timeline.

Citing existing regulations on ETFs as a blueprint, CCI suggests that similar efficiencies can be applied to non-ETF products. Rule 6c-11 and Rule 485 allow qualifying ETFs to conduct their activities without case-by-case approvals from the SEC. The proposed measures would benefit developing products based on digital assets.

Crypto innovators are also pushing for clearer labels and disclosure requirements for ETPs that are not deemed investment companies. CCI expects these products to be easily differentiated from ETFs, with exchange-traded commodity trusts and some digital asset products serving as examples.