Crypto industry urges SEC to avoid blanket novel ETF restrictions
Crypto firms and asset managers urged the SEC to avoid a blanket crackdown on “novel” ETFs and instead assess each product by its specific risks and structure. a16z, Grayscale, and the Crypto Council for Innovation backed more predictable timelines, coordinated fund and exchange reviews, and optional confidential pre-filing. They opposed reclassifying products in ways that would automatically pull non-securities into the Investment Company Act framework. The SEC had sought comment on whether current rules are adequate for new ETF structures. On labeling, a16z wanted “ETF” reserved for funds under the 1940 Act, Grayscale favored using the term for products with ETF-like economics, and CCI called for clearer disclosure rules rather than major framework changes.
