Crypto Groups Urge SEC for Tailored Regulations on Novel Exchange-Traded Products
Several crypto firms, asset managers, and advocacy groups have submitted proposals to the U.S. Securities and Exchange Commission (SEC) regarding regulatory frameworks for novel exchange-traded products (ETPs). These include ETPs focused on cryptocurrencies, private assets, event contracts, and leveraged strategies. The Crypto Council for Innovation (CCI), along with entities like Andreessen Horowitz, Grayscale, Chainalysis, Charles Schwab, Jane Street, Franklin Templeton, Kalshi, and others, responded to the SEC’s June request for comment on whether existing rules are sufficient or need updating. The submissions highlight a range of views. CCI urged the SEC to extend regulatory efficiencies available to ETFs under the Investment Company Act of 1940 to ETPs in order to promote innovation and investor choice, while also opposing changes that could create uncertainty for investors. Andreessen Horowitz argued against automatically classifying all novel products as investment companies and called for standardized schedules between fund registration and exchange listing reviews. Other firms like Grayscale opposed new portfolio restrictions on existing digital-asset ETPs, while Chainalysis proposed leveraging public blockchains to support real-time surveillance and verifiable disclosures. The SEC is considering whether current rules are adequate or if changes should be made to accommodate the evolving market for these products.
Topics: crypto etfs investment_products regulation