Grayscale stands among the digital asset companies prompting the U.S. Securities and Exchange Commission to permit confidential draft registrations for prospective exchange-traded products prior to public submission, as the regulatory body considers modifications to its handling of unconventional ETFs.
The cryptocurrency investment firm stated that an optional confidential mechanism could diminish the motivation for rival sponsors to put forward copying or duplicate applications. Furthermore, it desires SEC personnel to commit to a 45-day response window. 21Shares issued a comparable appeal, pointing to the velocity at which competitors can replicate public submissions. The SEC had inquired whether artificial intelligence might be fueling the rapid succession of multiple unconventional ETF submissions that appear largely identical.
A16z likewise expects the SEC to abbreviate its evaluation timeline. It contended that filings are currently delivered electronically, disclosures follow standard templates, and recurring questions emerge across various products. Markets also operate on a faster schedule than the existing evaluation duration, it mentioned. Nevertheless, a speedier procedure should not equate to a less rigorous evaluation, a16z supplemented.
Jane Street and Schwab Voice Worries
Conversely, Jane Street asserted that the drive to launch an ETF swiftly can cause rushed registrations, leaving insufficient opportunity for sponsors to gather input from market makers concerning fund mechanics and liquidity. It additionally recommended mandating that ETFs debut alongside a minimum of two authorized participants, which are the entities managing the creation and redemption of ETF units.
Simultaneously, Charles Schwab expressed opposition to making the submission procedure entirely private. Should the SEC engage in confidential dialogues with a sponsor, Schwab argued that the application ought to become accessible to the public at least 75 days before the fund takes effect.
Additional digital asset organizations leveraged the SEC assessment to request alterations extending past filing schedules and confidentiality. Multicoin Capital wishes for qualified staking receipt tokens—which signify crypto assets that have been staked to generate returns—to be permitted within spot crypto ETPs, including the prospect of comprising nearly all of their digital asset reserves. Jito Labs, the Jito Foundation, and the Solana Policy Institute similarly petitioned the SEC to formulate regulations enabling spot crypto offerings to utilize staking receipt tokens through a joint submission alongside Multicoin.
From an exchange viewpoint, the NYSE requested more dependable timeframes when novel assets arrive at exchanges. It noted that SEC personnel can presently instruct an exchange to postpone a listing while a matter is evaluated without providing a definite schedule, even instances where a different exchange might still be cleared to advance.
Feedback regarding the SEC petition was due on August 31, although the regulatory agency has persistently published submissions dated subsequent to that deadline. The SEC has not established a schedule for subsequent actions.
Originally published at https://www.theblock.co/news/regulation/2026-09-04-crypto-firms-urge-sec-to-speed-etf-reviews-and-allow-confidential-draft-filings-413532.
