CCI Submits Comment Letter Opposing Expanded ETF Definition
On August 31, the Crypto Innovation Council (CCI) sent a comment letter to the U.S. Securities and Exchange Commission (SEC) pushing back on a blanket expansion of the 'investment company' definition so it would cover novel exchange-traded funds (ETFs). CCI’s point is blunt: apply one broad definition to everything, and you create fuzzy registration obligations. That, in turn, would choke off the launch of innovative products.
Recommendations for Non-ETF ETPs and AI Applications
CCI says non-ETF exchange-traded products (ETPs) should get the same regulatory efficiency as ETFs. Simple as that. The idea is to avoid market efficiency losses that come from definitional discrepancies. And the council also backs a pre-consultation mechanism for AI-imitating applications, so there are clear compliance pathways ahead of time.
Market Data and Industry Response
The U.S. ETF market now tops $12 trillion, while Bitcoin spot ETP assets are closing in on $100 billion. And CCI is not alone here. Grayscale and Charles Schwab have submitted similar comments to the SEC too, showing the industry shares the same worries about the regulatory direction.