SEC Faces Industry Pressure to Restore Fair, Transparent Crypto ETF Approval Process

Leading asset managers, including VanEck and 21Shares, have jointly urged the U.S. Securities and Exchange Commission (SEC) to reinstate the ’first-to-file’ principle for cryptocurrency ETF applications. They argue that the SEC’s recent shift toward simultaneous approvals allows larger firms to replicate products and access the market alongside early movers, undermining innovation, competition, and regulatory integrity. Both industry insiders and stakeholders now express concerns that the current ETF approval process may unfairly benefit late entrants, distorting market share and raising questions about transparency and fairness in the rapidly evolving crypto ETF sector. As several prominent companies compete to launch Bitcoin ETFs, the emphasis on a fair and consistent regulatory approach is seen as critical for maintaining market integrity, supporting investor confidence, and sustaining healthy growth in the U.S. crypto ETF landscape. The debate comes at a time of robust market momentum, with total crypto capitalization exceeding $3 trillion and surging trading volumes, underscoring the growing role of ETFs in mainstream crypto adoption.