A split has opened in comments to the US Securities and Exchange Commission (SEC) over how quickly new crypto exchange-traded products should reach the market. Grayscale Investments and Andreessen Horowitz want reviews tailored to each product and shorter, more predictable timelines.
Charles Schwab and Jane Street, by contrast, have stressed public transparency and the mechanics that keep ETF prices aligned with their holdings.
The agency asked for views in late June on “novel ETFs,” a loose label covering funds tied to crypto, commodities, private assets, leverage, single stocks, blockchain features, or event contracts.
Officials wanted input on investment-company status, portfolio limits, disclosures, and the registration path.
The 60-day window closed August 31. The request was exploratory: it created no new rule and set no deadline for a decision.
Grayscale, a16z, and the Crypto Council for Innovation argued against treating every new product as one category.
Bitcoin and ether funds operate under listing standards, custody arrangements, and disclosure practices that differ sharply from private-asset vehicles or prediction-market contracts.
A single extra layer of restrictions, they said, would slow products that already have a compliance record.
All three also opposed automatically placing vehicles that mainly hold non-securities under the Investment Company Act of 1940.
That change could pull commodity trusts and many crypto products into a heavier regime.
Speed is the practical fight.
Fund registration and exchange-listing reviews often run on separate tracks. a16z asked the Commission to coordinate those tracks, publish standard calendars, and, where possible, process the two applications together.
Grayscale and the Council backed an optional confidential pre-filing discussion so issuers could identify problems before documents go public.
They noted that copycat filings now appear almost immediately after a first submission, a pattern some link to generative AI.
Schwab rejected a fully confidential process. The firm said any resulting filing should remain public for at least 75 days before it takes effect so the market can examine it.
Jane Street, an authorized participant and market maker, focused on secondary market trading and the create-and-redeem process that keeps ETF prices close to net asset value.
It warned that a fund with only one authorized participant can trade at a wider premium or discount in stress and suggested a minimum of two.
Those operational points cut against a rush toward sealed, accelerated reviews.
The backdrop is a $12 trillion-plus US ETF market and a growing shelf of spot crypto products.
Generic listing standards adopted in 2025 already shortened some commodity-trust reviews from as long as 240 days to about 75 days.
Issuers continue to file for additional tokens even as Grayscale recently withdrew three altcoin registrations.
The comment letters now ask whether that faster path should be preserved for established crypto products or tightened under a broad “novel” heading.
The Commission has not announced its next step.
It could issue staff guidance, propose amendments, or leave current rules in place. Until then, the record shows crypto issuers pushing for differentiation and speed, while large brokers and liquidity providers want more sunlight and stronger market-structure checks.