Grayscale Opposes New SEC Rulebook for Crypto ETFs

Grayscale has told the SEC to avoid altering the existing framework for crypto ETFs. Any new constraints would leave investors worse off with no corresponding gain, the firm said.

Grayscale submitted its comment on August 31, the final day for public input. The regulator is considering whether crypto funds require a dedicated set of rules.

Grayscale Draws a Line on Crypto ETF Rules

The SEC launched its review on June 30, posing 27 questions. Among seven asset classes under scrutiny, crypto is one.

Chairman Paul Atkins noted the industry’s growth. Since 2019, ETF assets have tripled. A number of sponsors have already paused new product launches while the review is underway.

A key question directly affects Grayscale. Should the term “ETF” be reserved exclusively for funds registered under the Investment Company Act of 1940?

Grayscale argued it should not. Its spot crypto products, including the pending Zcash ETF, are structured as commodity trusts. The firm has operated this way since 2013.

Grateful for the opportunity to comment on the @SECGov's consideration of novel ETFs, including crypto ETFs. In our letter, we encouraged the Commission to build on what’s already working and continue providing clear guidance for issuers.

— Grayscale (@Grayscale) September 2, 2026

Grayscale’s Chief Legal Officer Craig Salm elaborated on the position.

“The term ETF accurately describes the economic reality of exchange-traded commodity trusts, and restricting its use to registered investment companies would create investor confusion rather than resolve it,”

as stated in the firm’s comment letter.

The 81-Day Delay Behind the Argument

The firm also opposed changes to Rule 6c-11. Since 2019, that rule has allowed ETFs to list without case-by-case exemptions.

Imposing portfolio restrictions or prohibiting certain asset types would increase costs, Grayscale argued. Shareholders ultimately bear those costs.

The company pointed to its own experience. SEC staff approved a NYSE Arca listing rule for Grayscale’s five-asset crypto fund on June 30, 2025. The Commission subsequently put that decision on hold.

The fund did not start trading on the exchange until September 19, a delay of 81 days. Grayscale is now requesting a confidential pre-filing process with a maximum 45-day response time from SEC staff.

The comment period has ended. Demand for crypto ETFs has cooled after the initial wave of launches.

The 1940 Act, which is central to this dispute, will be 86 years old this year. The SEC’s decision will determine the pace for every pending crypto fund.