Vaneck, 21Shares and Canary Capital require the SEC to approve the ETF by “presentation order”

Crypto products managers accuse the Sec to break its historical approval policy in order of arrival, affecting equity in the ETF market.

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• Vaneck, 21Shares and Canary Capital They ask to return to a chronological approval policy.
  
• They point out regulatory favoritism and lack of incentives to innovate.
  
• The ETF Bitcoin and Ethereum They were approved for all applicants the same day at the time.

Amid the growing institutional interest in digital assets, three fund managers linked to the crypto ecosystem have issued an open letter addressed to the president of the US stock and values ​​commission. UU. (Sec), Paul Atkins, requesting the agency to restore the policy that financial products are approved according to their presentation order.

According to a report published by The Blockthe signatures Vaneck, 21Shares and Canary Capital They ask for the Sec resume the principle “First-to-File” (First to present), which is a regulatory standard that guaranteed loyal competition, encouraged innovation and protected the interest of the investor.

Concern arises after Sec, During the last approval processes for ETFs Bitcoin and Ethereum In cash, choose to authorize multiple proposals simultaneously, despite having been presented at different times.

Criticism of equal treatment in recent approvals

The letter, published on Friday on the social network X, directly accuses the Sec to generate a “Competitive imbalance” By moving away from this temporal criterion. Companies argue that, not giving priority to those who present first, the Commission It compromises the principles of efficiency, equity and innovation in financial markets.

“The failure in following this practice has frustrated the regulatory principles of innovation, equity and competition,” They point. They add that this omission has direct consequences for products sponsors negotiated in the stock market (ETP/ETF), since it increases costs and reduces opportunities for differentiation in the market.

The signatures urge a “Fast reinstatement of the principle of approval by order of arrival” For registration statements, as a way of restoring trust and ensuring an equitable process.

ETF pending: Sol, XRP, Doge And more

Currently, the Sec evaluates multiple applications for ETF based on alternative cryptocurrencies such as Solana (Sol), XRP, Dogecoin (Doge), among others. Most of these proposals were presented during the last year, partly promoted by the expectation of a more favorable regulation under an eventual republican administration.

During the mandate of Joe Biden, however, and after a key judicial ruling, the Sec approved the first ETF Bitcoin in cash in January 2024 and subsequently those of Ethereum, in the middle of the year. According to the signatory companies, the decision to authorize all funds BTC The same day – independently when the applications were submitted – it created an environment where incentives to innovate are reduced.

Matt Sigel, Director of Research in Digital Assets of Vaneck, previously declared to The Block that His firm was the first to submit an application for an ETF Solarium In June 2024. He pointed out that they did it with the hope that the Sec will resume a fairer criterion based on presentation time.

Consequences for innovation and market efficiency

The letter also emphasizes that this simultaneous approval policy discourages the pioneering development of financial products, limiting the offer for investors and affecting market efficiency.

“The choice for investors decreases, compromises market efficiency and undermines the commission’s mission”indicate the managers. The aforementioned mission refers to protecting investors, maintaining ordered markets and facilitating capital formation.

So far, the Sec He has not issued comments on the open letter or announced changes in his ETF evaluation policy.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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