Crypto leaders urge SEC to avoid blanket ETF rules

Grayscale, a16z, and CCI urged the SEC to avoid blanket ETF rules, recommending individual risk-based reviews and opposing broader investment company definitions.

Grayscale, a16z, and the Crypto Council for Innovation (CCI) have urged the US Securities and Exchange Commission (SEC) not to impose blanket restrictions or a single regulatory framework on new or 'novel' exchange-traded funds (ETFs), particularly those tied to digital assets. Instead, they recommend that the SEC evaluate each ETF individually, taking into account its unique risk profile and underlying features. The organizations submitted comment letters on August 31, marking the end of the SEC's 60-day public comment period on new ETF regulations. They emphasized the need to maintain current classification rules and opposed expanding the definition of investment companies to include funds primarily holding non-securities. The groups also called for more predictable review timelines, optional confidential pre-filings, and greater regulatory efficiency, warning that a one-size-fits-all approach could stifle innovation and delay product launches.