Grayscale Opposes Tighter Crypto ETF Rules, Citing Cost Increases
Grayscale has submitted comments to the U.S. Securities and Exchange Commission (SEC) opposing new rules for cryptocurrency exchange-traded funds (ETFs). The company believes that tightening regulations will not provide additional protection for investors but may increase their costs.
The SEC's discussion on ETF rules began on June 30, with 27 questions up for consideration. Grayscale was among the companies to submit comments by August 31, the last day of the consultation period.
The company argues that reserving the term ETF only for funds registered under the Investment Company Act of 1940 would be too narrow. Grayscale notes that its crypto products with spot settlements are structured as commodity trusts rather than investment funds, and using a different model since 2013.