Crypto industry participants, including Grayscale, a16z and the Crypto Council for Innovation (CCI), urged the SEC to avoid blanket restrictions on novel exchange-traded funds (ETFs) and evaluate products based on their individual risk parameters. Grayscale and CCI supported optional confidential pre-filing processes, while a16z advocated for evaluations based on underlying product characteristics. All three organizations opposed changes to existing investment-company classifications that could automatically subject products holding non-securities to the Investment Company Act framework. The comments were submitted during a 60-day public-comment period following the SEC’s June 30 consultation on next-generation ETFs. However, disagreements remain among commenters regarding the definition of ETF and approval procedures, with a16z proposing that the term be reserved for funds under the Investment Company Act of 1940.
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