Crypto Groups Push SEC for Tailored Rules on Novel ETPs
Crypto groups are pushing the Securities and Exchange Commission (SEC) to create tailored rules for novel exchange-traded products (ETPs).
The Crypto Council for Innovation (CCI), Andreessen Horowitz (A16z), and other companies submitted letters to the SEC in response to its request for comment on 'novel ETFs'. The CCI asked the agency to extend regulatory efficiencies available to Exchange-Traded Funds (ETFs) registered under the Investment Company Act of 1940 to other ETPs. Many spot crypto products use commodity-trust structures instead of registering as investment companies.
A16z also requested that the SEC retain the statutory definition of an investment company and not automatically bring products holding non-securities under the 1940 Act. The firm argued that crypto ETPs already operate under exchange listing standards and established disclosure requirements, separating them from products holding illiquid private assets or pursuing less-tested strategies.
The submissions showed a wider split in the discussion around ETFs. Grayscale opposed new portfolio restrictions for established digital-asset products and supported optional confidential consultations before public filings. Chainalysis recommended that public blockchains could support real-time surveillance, independently verifiable portfolio data, and machine-readable disclosures.