Crypto Firms Push SEC for Risk-Based Review of Novel ETFs
The US Securities and Exchange Commission (SEC) is reviewing how to regulate 'novel' exchange-traded products, and major crypto investors are pushing back against a one-size-fits-all approach.
In public comments posted in late August, the venture capital firm a16z, digital asset investment manager Grayscale, and the Crypto Council for Innovation (CCI) urged the regulator to preserve existing classifications and review products based on their specific risk profiles rather than sweeping new products into a separate regulatory bucket.
The submissions were filed around the close of the SEC's 60-day public comment window following its June 30 request for feedback on whether current rules adequately cover novel ETFs and whether the approval and registration process should be changed.