Analyzing the latest trends in issuers' interactions with the U.S. regulator, I see a clear market demand for streamlining bureaucratic procedures. Grayscale Investments, 21Shares, and venture capital giant Andreessen Horowitz (a16z) have submitted consolidated proposals to the U.S. Securities and Exchange Commission (SEC) for reforming the registration process of exchange-traded funds (ETFs).
The key idea Grayscale is lobbying for is the introduction of a confidential filing regime for draft documents before their public disclosure. In my view, this is quite a rational kernel: currently, the publicity of drafts creates a breeding ground for competitors to copy successful applications, which reduces incentives for innovation in product structures. The company also insists on introducing a strict timeline: SEC staff responses to issuers' requests must arrive no later than within 45 days.
21Shares has put forward a nearly identical package of proposals. Notably, the regulator itself previously asked the market a question: whether the use of artificial intelligence contributes to the emergence of many similar applications for "new" ETFs. This indicates that the SEC is aware of the problem of template-based filings but is seeking ways to address it.
At a16z, they supported the call to shorten timelines, arguing this with electronic document flow and the repeatability of questions from product to product. However, they made an important caveat: acceleration must in no way imply weakening substantive review.
The Flip Side of the Coin: Risks of Haste
Not all market participants share the optimism about acceleration. Representatives of Jane Street warn: the race for speed could lead to hasty registrations and reduce time for feedback from market makers. They reasonably note that assessing liquidity and fund structure takes time. As a compromise, the company proposes a mandatory launch of products with at least two authorized participants (APs).
Charles Schwab, for its part, opposes full confidentiality of the procedure. Their position looks balanced: if the SEC does conduct non-public discussions, the final document should be made public at least 75 days before taking effect, to preserve transparency.
Staking in ETFs and Other Initiatives
In parallel with procedural issues, the market is raising substantive topics. Multicoin Capital, together with Jito Labs, Jito Foundation, and the Solana Policy Institute, has proposed allowing liquid staking tokens to be included in spot crypto-ETPs, up to these assets dominating the fund's portfolio. This would open the door for new yield-bearing instruments.
The NYSE exchange also contributed its part by asking for more predictable review timelines. According to their observations, regulator staff may ask to postpone listings without clear timeframes, which creates unequal conditions for venues working with similar products.
Despite the official comment deadline having expired on August 31, the SEC continues to publish materials. The regulator has not yet outlined a further action plan, but given the recently presented Regulation Crypto Assets draft, the vector toward simplifying capital through tokens is obvious.
My analysis: The current situation resembles a classic conflict between innovative speed and regulatory caution. Issuers' demands for a 45-day response timeline look ambitious, but the SEC is unlikely to commit to such rigid formal constraints. Most likely, we will see some hybrid approach where confidentiality will be partial, and timelines more regulated, but with the regulator retaining the right to pause for deep analysis of complex products.