Crypto companies urge SEC to speed up ETF review, allow confidential drafts to be submitted

Crypto ETF Issuers Alliance urges SEC to speed up review and allow submission of confidential drafts

The Crypto ETF Issuers Alliance, led by Grayscale, 21Shares and a16z, is pressing the U.S. Securities and Exchange Commission (SEC) to compress the ETF review process and allow submission of optional confidential drafts. Among them, Gray specifically targeted its proposed "new ETF pre-declaration consultation process" and required the SEC to commit to providing a staff response within 45 days.

This push has been filed in the SEC's register of opinions on "new ETFs" and has sparked divisions within the industry. Charles Schwab and the New York Stock Exchange (NYSE) advocate mandatory public transparency, which opposes these institutions.

What crypto companies want the SEC to change

These requests are reflected in a comment letter on the new ETF consultation launched by the SEC on June 30, 2026. The consultation reserved a 60-day public comment period after it was published in the Federal Register. Case number S7-2026-24 has become a discussion platform for two major industry demands: faster review speeds and a confidential draft mechanism.

Gray requested the SEC to establish an optional confidential pre-declaration consultation process for new ETFs, and support 45 staff members to respond to commitments and accelerate their entry into force incentives. This confidential window will allow issuers to communicate privately with SEC staff before registration statements are disclosed to competitors.

a16z elaborated on the second part of the appeal, requiring a standardized timetable for new ETFs and a shortened review cycle. The company emphasized that faster review does not mean looser review, but rather positioned the request as an improvement in procedural efficiency rather than de-regulation.

"The committee should also consider implementing standardized schedules and shortening review cycles."-- Andreessen Horowitz (a16z) Comment Letter

The call reflects the broader lobbying stance taken by crypto groups on Capitol Hill, where industry associations have urged the Senate to advance the CLARITY Act to improve market structure rules. Although the stage here is the regulatory body rather than the legislative body, the theme of "faster, clearer" remains consistent.

Why confidential draft submissions are crucial for crypto ETF issuers

The core reason for gray is based on competitive considerations. The company said the confidential filing period would reduce the incentive for competitors to submit copycat or duplicate registration statements while original documents are under review. In this view, the public first draft is equivalent to providing a template for opponents.

21Shares reinforced this view, telling the SEC that the industry would benefit from pre-filing consultations and confidential draft registration documents, as public drafts expose publishers to competitive filings from copycats. The company's ETP global product head described the mechanism as early intervention.

"Industry will benefit from confidential, early intervention mechanisms."-- Duncan Moir, 21Shares Comment Letter

This claim has precedent. The SEC's Corporate Finance Division has allowed non-public draft registration review, and ETF commentators hope this convenience will be replicated in the investment management and exchange review channels that handle new ETFs.

Not all filers agree with this view. Charles Schwab opposes a completely confidential filing process and recommends that any confidential review of innovative product declarations be made public at least 75 days before they take effect to maintain investor visibility before going public.

What the SEC's accelerated ETF review means for the crypto market

Review speed maps directly to listing timing: compressed cycles shorten the gap between issuers 'declarations and tradable products, while confidentiality changes the start time of the disclosure competition. Market size is one of the motivations behind the SEC's own statement, with ETF assets growing from approximately US$4 trillion in 2019 to more than US$12 trillion by the end of 2025.

The exchange pointed out the operating costs caused by the current situation. The New York Stock Exchange said SEC staff sometimes ask exchanges to delay listings of new ETFs and do not specify a feedback timetable, creating uncertainty and potentially creating regulatory arbitrage space between venues with different listing standards.

For the crypto ETF audience, the market background is relatively weak. Bitcoin was trading at close to $79,664, down about 2.2% in 24 hours, and trading volume was about $36.9 billion. Although the "Fear and Greed Index" remains at 74, in the "greed" range, market sentiment remains complex.

The sentiment among filers is divided rather than unified: Gray, 21Shares and a16z support faster, more confidential reviews, while Schwab and the NYSE prioritize transparency and predictable exchange-level timing. The differences echo legislative uncertainty pointed to by crypto policy observers, with Senator Cynthia Lummis warning that the next crypto legislative window may not reopen until 2030.

The key premise is that these comment letters are only requests, not promises. The SEC has not released a timetable for the action plan or indicated whether it will adopt a confidential pre-declaration channel, and the requested changes do not guarantee approval or policy changes. This keeps the current debate at a procedural level, just as the battle over market structure in Congress remains a legislative issue week after week.