Several big investment firms are asking the SEC (Securities and Exchange Commission) to change how it approves new exchange-traded products (ETPs). They want the SEC to go back to a “first-to-file” system.
The Problem with Simultaneous Approvals
Currently, the SEC sometimes approves multiple similar ETP applications at the same time. VanEck, 21Shares, and Canary Capital argue this hurts smaller companies and slows down innovation. They say the old “first-to-file” system—where the first company to apply got approved first—was fairer and spurred competition. This allowed smaller, newer firms to gain a foothold and become industry leaders. The shift to simultaneous approvals, they claim, favors larger firms that can easily copy successful products without worrying about launch dates.
Why “First-to-File” Matters
The letter to SEC Chairman Paul Atkins explains that the “first-to-file” rule helped the ETP market grow to a massive $15.4 trillion. It created a level playing field where innovative companies could thrive. The current system, they argue, undermines this progress. While they acknowledge the SEC might have reasons for simultaneous approvals (like reducing workload), they believe a return to “first-to-file” is crucial for a healthy and competitive market.
The Bottom Line
These investment firms believe the SEC’s change is unfair and harms innovation. They’re pushing for a return to the “first-to-file” system to ensure a more level playing field for all ETP applicants.
(Note: Crypto market information has been omitted as it was not directly relevant to the main topic.)/p>
