ETF issuers pen letter urging SEC return to ‘first-to-file’ approvals

Exchange-traded fund (ETF) issuers VanEck, 21Shares and Canary Capital sent a letter to the US Securities and Exchange Commission (SEC) urging a return to the “first-to-file” principle of approving ETF applications in the order they were submitted to the regulator.

The companies argued that by failing to abide by the first-to-file principle, the default process for application approval until crypto ETFs debuted, the SEC diminishes healthy competition and hinders financial innovation. The letterreads:

“Continued global leadership of the United States in financial innovation is deeply connected to regulatory frameworks that actively support and reward entrepreneurship, creativity, and genuine innovation,” the letter continues.

Digital assetETF filings acceleratedfollowing the inauguration of US President Donald Trump, as asset managers and crypto companies rushed to gain approval for new investment vehicles in anticipation of a friendlier regulatory climate in the US.

Related:SEC to shape crypto policy with ‘notice and comment,’ says Atkins

SEC delays decisions on staking, altcoin ETFs as applications multiply

Although institutional interest in altcoin and staking ETFs continues to grow and ETF filings continue to multiply, the SEC has delayed its decision on several altcoin and crypto-staking ETFs.

In May, the regulatorpostponed its decisiondeadline on listing Grayscale’s spot SolanaSOL$148.56Trust ETF to October.

SEC officials alsodelayed the approvalof staking and XRPXRP$2.16ETFs in May, a development that did not surprise analysts.

“The SEC typically takes the full time to respond to a 19b-4 filing,” Bloomberg ETF analyst James Seyffart wrote in a May 20 Xpost.

“Almost all of these filings have final due dates in October. Early decisions are out of the norm,” the analyst wrote.

Additionally, the SEC recently responded to the effective registration statements for the REX-Osprey staked ETFs, raising concerns that the investment vehiclesmay not qualify as ETFsdue to the business structure of the underlying fund.

This caused a delay in the ETF launch despite many analysts forecasting that the effective registration statementssignaled imminent launchesof these investment products.

Magazine:SEC’s U-turn on crypto leaves key questions unanswered

Explore more articles like this

Subscribe to the Markets Outlook newsletter

Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday

By subscribing, you agree to ourTerms of Services and Privacy Policy