Crypto industry groups have called on the US Securities and Exchange Commission to avoid sweeping restrictions on novel exchange-traded funds, arguing instead for regulatory assessments tailored to individual products and risk profiles.
The US Securities and Exchange Commission (SEC) initiated a 60-day public-comment period on 30 June to solicit feedback on the classification and oversight of novel ETFs. By 31 August, letters from industry stakeholders—including venture capital firm a16z, digital asset investment manager Grayscale, and the Crypto Council for Innovation (CCI)—were made public, urging regulators to prioritise clarity and proportionality in oversight.
a16z advocated for evaluations based on “underlying characteristics and predictable timelines,” while Grayscale challenged the imposition of new conditions on products with “established compliance records.” The CCI, meanwhile, emphasised the need for regulatory efficiencies that apply consistently across ETFs and non-ETF exchange-traded products (ETPs).
The SEC’s request for input follows growing scrutiny of crypto-asset investment vehicles, with industry participants seeking to balance innovation with investor protection. No immediate regulatory action has been announced, but the letters signal intensified lobbying ahead of potential policy decisions.
Written by Steven Cook
Regulation Desk
