Crypto Industry Urges SEC to Halt Broad 'Novel' ETF Restrictions
The US Securities and Exchange Commission (SEC) has faced opposition from prominent crypto industry players regarding their proposed restrictions on 'novel' exchange-traded products (ETFs).
In filings submitted to the SEC, venture capital firm a16z, digital asset investment manager Grayscale, and the Crypto Council for Innovation (CCI) argued that the SEC should assess each proposal based on its specific risk profile and product mechanics.
The industry stakeholders pushed back against treating 'novel' ETFs as a single regulatory category, urging the SEC to maintain existing investment-company classification guardrails and avoid sweeping rule changes.
The commenters also emphasized the need for more predictable review timelines and streamlined coordination between fund registration and exchange listing.