The SEC finally admitted it had messed up crypto regulation and now wants to turn over a new leaf — with 200 ETF applications queuing up every month, if the confidential submission mechanism is implemented, can it really prevent innovation from being blindly copied?

Bloomberg ETF analyst Eric Balchunas, citing comments from Brian Daly of the SEC's Investment Management Division in an interview, stated that the SEC believes past mishandling of cryptocurrency regulation has damaged market trust and hopes to restore trust by establishing a more orderly approval process. Currently, the SEC receives about 200 ETF applications per month, including new products such as prediction markets. Daly said the SEC supports innovation while fulfilling its investor protection duties, does not want to delay new product launches due to approval efficiency, and is studying the establishment of a more comprehensive approval mechanism, including considering allowing some ETF applications to be submitted confidentially to protect innovation and prevent copycat applications.