Crypto Firms Push Back Against SEC's Novel ETF Restrictions
The US Securities and Exchange Commission (SEC) has received letters from prominent crypto industry participants, including Grayscale, a16z, and the Crypto Council for Innovation (CCI), urging it to avoid blanket restrictions on novel exchange-traded funds (ETFs).
The letters, dated August 31, were submitted in response to the SEC's request for feedback on its regulatory approach to novel ETFs. The industry participants argue that existing regulations are adequate and that a one-size-fits-all approach could harm innovation.
a16z proposed that crypto-based ETPs should not be grouped with products holding private assets or using other novel strategies, citing improved market infrastructure and established disclosure requirements. Grayscale argued that digital asset products with established compliance and disclosure records should not face new portfolio conditions or disclosure regimes merely because they are characterized as novel.
The commenters broadly opposed categorical regulatory changes that could impose additional requirements or delay product launches. However, their recommendations differed on classification, approval procedures, and terminology.