SEC Admits Regulatory Failures, Vows Overhaul of Crypto ETF Review Process

The US Securities and Exchange Commission (SEC) has acknowledged that it lost the industry's trust in its handling of cryptocurrency regulation. The agency is now working to rebuild credibility by overhauling its exchange-traded fund review process.

Brian Daly, director of the SEC's Division of Investment Management, made the comments on Bloomberg's Trillions podcast on July 2. 'We got it wrong in the crypto space and we lost trust,' he said. 'Now we want to restore trust and create an orderly review process.'

The SEC receives about 200 ETF listing applications each month, with new products such as prediction-market ETFs rising quickly. Daly emphasized that the agency is not trying to block innovative products, but rather working to build a clear review process.