Crypto Groups Push SEC for Tailored Rules on Novel ETFs

In brief

• CCI wants non-ETF products to receive regulatory efficiencies similar to those available to ETFs.
• A16z said the SEC should assess products according to their assets and risks.
• Commenters disagreed over event contracts, confidential filings, staking and retail safeguards.

Crypto firms, asset managers, market makers and consumer advocates pressed the Securities and Exchange Commission with competing plans for regulating a new generation of exchange-traded products, spanning crypto, private assets, event contracts, and leveraged strategies.

“Just as the Commission has modernized rules to promote efficiencies for ETFs, the Commission should consider providing similar efficiencies for non-ETF ETPs to promote regulatory parity, foster innovation, and expand investor choice,” the Crypto Council for Innovation wrote.

CCI’s letter joined submissions from Andreessen Horowitz, the Solana Policy Institute, Grayscale, Chainalysis, Charles Schwab, Jane Street, Franklin Templeton, Kalshi and others responding to the SEC’s request for comment on “novel ETFs”.

The SEC issued the request in June, asking whether existing rules adequately protect investors and whether registration procedures should change to accommodate new products. The letters came in on Monday, the last day submissions would be accepted.