Grayscale Opposes SEC's Proposed Changes to Crypto ETF Regulations
Grayscale has submitted a comment letter opposing the U.S. Securities and Exchange Commission’s (SEC) review of exchange-traded fund (ETF) regulations, arguing that new restrictions would harm investors without providing benefits. The firm emphasized its long-standing use of commodity trusts for crypto products since 2013 and argued against limiting the term 'ETF' to funds registered under the Investment Company Act of 1940. Grayscale also criticized proposed changes to Rule 6c-11, which allows ETFs to launch without individual SEC approval. The firm cited an example where its crypto fund faced an 81-day delay before trading could begin after initial regulatory clearance in June 2025. Grayscale is advocating for a confidential pre-filing process with faster response times from the SEC. The outcome of this debate will influence how future crypto ETFs are structured and approved, as demand has cooled following an earlier surge.
