Crypto Firms Push Back Against SEC's One-Size-Fits-All ETF Rules

The SEC has been working on new guidelines for ETFs and digital assets since June. Grayscale and Andreessen Horowitz (a16z) have now responded to the regulator's consultation, urging it not to automatically tighten rules for new ETFs.

The two organizations argue that crypto ETFs should not be treated as a single category with private asset funds, leveraged strategies, or event contracts. They propose tailored reviews based on each product's real risk, rather than a one-size-fits-all approach.

a16z wants to reserve the term 'ETF' for funds registered under the Investment Company Act, while Grayscale opposes this proposal. The two groups also disagree on the timing of reviews, with Grayscale suggesting an optional and confidential procedure before public filing.