Exchange-traded fund (ETF) issuers VanEck, 21Shares, and Canary Capital have written to the U.S. Securities and Exchange Commission (SEC), urging it to resume approving ETF applications based on the 'first-in, first-out' principle.
These companies pointed out that not adhering to this principle hinders healthy competition and financial innovation. The letter stated:
“This undermines investor choice, affects market efficiency, and fundamentally contradicts the commission's mission to protect investors, maintain fair markets, and promote capital formation.”
The letter further emphasized: 'America's continued global leadership in financial innovation is closely related to a regulatory framework that encourages and rewards entrepreneurship, creativity, and true innovation.'
Since U.S. President Donald Trump took office, the number of digital asset ETF applications has accelerated, with asset managers and crypto companies rushing to launch new investment tools in hopes of gaining approval in a more favorable regulatory environment in the U.S.
As applications increase, the SEC has postponed decisions on staking and altcoin ETFs.
Despite growing interest in altcoins and staking ETFs, the number of ETF applications is also increasing, but the SEC has delayed the approval of several altcoin and crypto staking ETFs.
In May, regulators postponed the decision on Grayscale's spot Solana (SOL) trust ETF listing until October.
SEC officials also delayed the approval of staking and XRP (XRP) ETFs, which analysts were not surprised by.
Additionally, the SEC responded to the effective registration statement of the REX-Osprey staking ETF, indicating that due to the underlying fund's business structure, it may not meet ETF qualifications, leading to a delay in product launch.
