SEC Weighs Regulatory Framework for Novel Crypto-Based ETPs

Crypto firms and advocacy groups have submitted comments to the Securities and Exchange Commission (SEC) on novel exchange-traded products, including crypto-based ETFs. The Crypto Council for Innovation (CCI) asked the SEC to extend regulatory efficiencies available to traditional ETFs to other types of ETPs.

The CCI argued that non-ETF products should receive similar treatment, while Andreessen Horowitz (A16z) proposed a tailored approach based on asset and risk levels. A16z also suggested closer coordination between fund-registration and exchange-listing reviews.

Other commenters disagreed on issues such as event contracts, confidential filings, staking, and retail safeguards. Grayscale opposed new portfolio restrictions for established digital-asset products, while Charles Schwab proposed making resulting filings public for at least 75 days before they take effect.