The ask
The groups want the SEC to preserve the existing fund categories, arguing that a shift would disrupt products already on the market. They also want the agency to speed up its review of new exchange-traded products, which they say is taking too long. The letter doesn't propose a specific timeline, but it calls for a more efficient process. The groups say the current system is workable, but only if the SEC stops adding new layers of review.
The classification question
Fund classifications determine how crypto products are treated under securities law. A change could force existing funds to adjust their structures or take on new compliance burdens. The groups say keeping the current framework is the safer path, at least until the SEC has a clearer picture of how the market works. They argue that the existing categories have held up well and that a sudden overhaul would create uncertainty for issuers and investors alike.
The review bottleneck
New exchange-traded products have to go through a lengthy SEC review before they can launch. The groups argue that this process is holding back innovation and limiting investor
