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.

Major market maker Jane Street pointed out that pressure to expedite the early listing of ETFs could lead to hasty filings, potentially compressing the time available for market makers to gather opinions on fund design and liquidity. The company proposed that at least two authorized participants (APs) be secured to handle the creation and redemption of new ETFs.

U.S. securities giant Charles Schwab opposed the complete privatization of the filing process. They argued that even if the SEC conducts private discussions, filings should be made public at least 75 days before the fund's effectiveness.

Requests for Product Design

Cryptocurrency fund management company Multicoin Capital requested that "staking receipt tokens," which are backed by deposited cryptocurrencies for earning rewards, be allowed to be included in physical cryptocurrency ETPs (exchange-traded products not registered as ETFs). GitLab, the Git Foundation, and the Solana Policy Institute also requested similar rule development in a joint response.

The New York Stock Exchange (NYSE) called for more predictable operations, noting that there are cases where SEC staff request listing delays without providing clear deadlines during the listing examination of new ETFs.

The SEC has continued to accept submitted documents even after the August 31 deadline for public comments, and has not yet indicated when it will respond.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.