Crypto industry urges SEC to avoid blanket novel ETF restrictions

Several major crypto industry players have pushed back against potential SEC moves to impose broad restrictions on novel exchange-traded products. Grayscale, Andreessen Horowitz, and the Crypto Council for Innovation collectively urged the regulator to maintain current classification frameworks rather than lump emerging digital asset ETFs into a single regulatory bucket. The groups argued that a sweeping approach could hamper innovation and undermine U.S. competitiveness in the digital asset sector.

The industry bodies instead proposed alternative pathways that would allow for more transparent and expedited review processes tailored to different product types. Their position reflects concern that uniform restrictions might slow product development and market growth across the sector.

• Major industry groups oppose SEC moves toward blanket ETF restrictions, arguing such rules would stifle innovation and U.S. global standing in crypto markets.
• Petitioners want existing classification rules preserved and are offering alternative review frameworks that differentiate between product types rather than treating them uniformly.