Crypto Firms Push Back Against SEC's Uniform Regulations for Novel ETFs

The Securities and Exchange Commission (SEC) has opened a consultation on novel exchange traded funds (ETFs), which has drawn opposition from major players in the crypto industry.

Grayscale Investments, venture capital firm a16z, and the Crypto Council for Innovation (CCI) have urged the SEC to assess these new products based on their individual risk characteristics rather than imposing uniform restrictions.

The three organizations argue that novel ETFs present different risks due to their unique features such as crypto assets, private investments, leverage, and event contracts. They oppose treating these products as one category under existing federal law.