Crypto firms call on SEC for ETF: "Faster and more confidential review"

In the United States, major companies in the cryptocurrency sector have presented various proposals to the Securities and Exchange Commission (SEC) to reorganize the application processes for exchange‑traded funds (ETFs). The focus of the companies' requests is to have applications evaluated more quickly and to conduct certain stages without public disclosure.

Grayscale and 21Shares requested that draft applications for new ETF products be reviewed confidentially by the SEC before they are officially presented to the public. Grayscale argued that optional confidential discussions prior to the application could prevent rival firms from quickly copying similar products.

The company also requested that SEC personnel...respond within 45 daysproposed a commitment to do so.

21Shares also put forward a similar approach, demanding that applications undergo confidential discussions and draft review before being made public.

a16z: ETF Reviews Should Be Accelerated

The venture‑capital firm a16z has asked the SEC to shorten the review period for ETF applications. The company said that the process could be carried out more efficiently now that applications are filed electronically and the explanations in the documents are largely standardized.

a16z also pointed out that repeating similar questions in applications within the same product group prolongs the process. However, the company emphasized that shortening the review period should not reduce the scope of the audit.

It was also noted that the SEC is evaluating whether artificial intelligence has an impact on the rapid filing of new‑generation ETF applications with similar content.

Jane Street Warned About Speed

Not all firms share the same view on speeding up the process. Jane Street warned that the pressure to bring ETFs to market as quickly as possible could lead some applications to be submitted without adequate preparation.

The firm said it needs sufficient time to gather market makers’ views on the structure and liquidity of the funds it will launch. Jane Street also proposed that at least two qualified participants be required to work with the ETF before it begins trading.

Authorized participants play a pivotal role in the creation of ETF shares and in the process of redeeming them in response to investor demands.

Charles Schwab Opposes Entirely Secret Process

Charles Schwab also objected to the complete secrecy of ETF filings. The company said that if there is a confidential discussion between SEC staff and a sponsor, the relevant filing documents should remain confidential until the registration statement becomes effective.at least 75 days agoHe suggested that it be explained to the public.

Thus the company advocated for both protecting confidentiality at certain stages of the application process and allowing other market participants to access sufficient information.

New Proposal for Staking Tokens

The proposals forwarded from the crypto sector to the SEC were not limited to speeding up the application process and confidentiality.

Multicoin Capital asked that receipt tokens representing the digital assets staked and the rewards earned from them be permitted to be used in spot crypto investment products if they meet certain conditions.

The company also advocated that suitable tokens be allowed to constitute a large portion of the digital asset portfolio of those products.

Jito Labs, Jito Foundation, and Solana Policy Institute, together with Multicoin Capital, presented a similar view and requested that the rules governing the use of staking tokens in spot crypto investment products be clarified.

NYSE, however, requested that a more predictable timetable be established for the meetings with the SEC in the listing process of new types of investment products.

The SEC's opinion‑gathering process on this matter ended on August 31. While the commission continues to publish opinions submitted after that date, it has yet to announce an official timetable for subsequent steps.