Crypto firms are quietly lobbying the SEC to let them file ETF applications in secret, and the biggest names on Wall Street are already sounding the alarm.
A coalition of crypto companies has formally urged the Securities and Exchange Commission to accelerate its ETF review process and, critically, allow issuers to submit draft filings on a confidential basis. The ask is bold. It would let firms get informal SEC feedback behind closed doors before anything hits the public record, a process that could dramatically reshape how crypto ETFs come to market.
But not everyone is cheering.
Jane Street and Charles Schwab, two institutions with serious skin in the ETF game, have raised pointed objections. Their concern: confidential filings mean less market scrutiny. Fewer eyes on the process. Less time for competitors, analysts, and everyday investors to spot problems before a product launches. In a market still scarred by high-profile collapses and regulatory failures, that is not a small concern.
The push for speed is understandable. The current ETF review process under the SEC is notoriously slow, and crypto firms argue that delays create uncertainty, stifle innovation, and leave U.S. markets falling behind global competitors. After the landmark approval of spot Bitcoin ETFs in January 2024, the industry smells blood. There are dozens of proposed crypto ETF products sitting in the pipeline, from Ethereum staking ETFs to multi-asset crypto baskets, and the firms behind them want answers faster.
Confidential draft filings, known as the "test the waters" approach, are already used in traditional IPO processes under the JOBS Act. Crypto advocates argue there is no reason the same courtesy should not extend to ETF applications. The SEC gets to review, issuers get to refine, and nothing goes public until both sides are closer to aligned.
The counter-argument is sharp: public filings are a feature, not a bug. They allow the market to pressure-test new products before they launch. Hiding that process, even temporarily, concentrates knowledge in the hands of issuers and regulators, cutting out the analysts, journalists, and competitors who often catch what both sides miss.
This debate is not abstract. It will directly determine how fast, and how safely, the next wave of crypto ETFs hits the market.
What to watch: If the SEC signals openness to confidential filings, expect a wave of new ETF applications to accelerate quietly in the background. Track any SEC rulemaking updates and watch for sudden product announcements with unusually short public comment windows. The crypto ETF race is not slowing down, and the rules governing it are being rewritten right now.