Crypto Industry Pushes SEC to Evaluate ETFs on a Risk-By-Risk Basis
The US Securities and Exchange Commission (SEC) is facing pressure from prominent crypto industry players to adopt a risk-based evaluation approach for new exchange-traded products (ETFs).
A16z, Grayscale, and the Crypto Council for Innovation (CCI) submitted comments to the SEC in filings dated August 31, urging against broad restrictions on novel ETFs. They argue that each proposal should be assessed based on its specific risk profile and product mechanics.
The industry stakeholders are concerned that categorical changes could raise costs for issuers and delay launches, even where the underlying risks are not equivalent. They also oppose altering investment-company classifications to automatically pull non-securities holdings into the Investment Company Act framework.
The commenters supported optional confidential pre-filing processes to clarify expectations earlier in the review timeline. A16z asked the SEC to coordinate fund-registration reviews with exchange-listing reviews, aiming for a more predictable workflow.