Crypto Groups Urge SEC to Adapt Regulations for New Exchange-Traded Products

Financial and crypto industry groups have pushed the US Securities and Exchange Commission (SEC) to adapt regulations for new exchange-traded products (ETPs). The groups submitted proposals in response to the SEC's request for comments on 'innovative' ETFs.

The Crypto Council for Innovation wrote that the SEC should extend some of the regulatory efficiencies available to registered investment companies to other ETPs. Many crypto products use commodity index fund structures instead of registering as investment companies.

The group also argued that the SEC should 'abstain from updating the definition of an investment company,' saying a change could create uncertainty without providing clear benefits to investors.