ETF issuers pen letter urging SEC return to ‘first-to-file’ approvals

ETF issuers say abandoning the long-held first-to-file method stifles innovation and rewards lazy behavior on the part of filers.

Exchange-traded fund (ETF) issuers VanEck, 21Shares and Canary Capital sent a letter to the US Securities and Exchange Commission (SEC) urging a return to the “first-to-file” principle of approving ETF applications in the order they were submitted to the regulator.

The companies argued that by failing to abide by the first-to-file principle, the default process for application approval until crypto ETFs debuted, the SEC diminishes healthy competition and hinders financial innovation. The letter reads:

“Continued global leadership of the United States in financial innovation is deeply connected to regulatory frameworks that actively support and reward entrepreneurship, creativity, and genuine innovation,” the letter continues.

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