Debate Over New ETF Regulations: Speed vs. Safety in the U.S. Cryptocurrency Industry

New ETF Opinions Flood In

Multiple cryptocurrency-related companies have submitted opinions regarding the regulatory framework for the "new type of ETF" being considered by the U.S. Securities and Exchange Commission (SEC). Major asset management firm Grayscale and Swiss cryptocurrency ETF management company 21Shares have expressed their own requests, including a review of the filing examination process.

Grayscale proposed the introduction of a voluntary procedure that allows for the submission of draft filings privately before listing. They argued that this could suppress the motivation for submitting imitative and duplicative applications, and also requested a commitment from SEC staff to respond within 45 days.

21Shares similarly requested a private filing process, citing the rapid imitation of publicly disclosed filings by competing companies as a concern. Venture capital firm a16z called for a reduction in the examination period but added that speeding up should not mean "simplifying the review."

Cautionary Views

On June 30, the SEC began soliciting public comments on the regulatory framework for new types of ETFs linked to cryptocurrencies and prediction markets. The cryptocurrency industry group Crypto Council for Innovation (CCI) also submitted an opinion on August 31, requesting the avoidance of a uniform expansion of the definition of investment companies and the consideration of private filing procedures.