SEC seeks feedback on next-generation ETF rules
- The US Securities and Exchange Commission opened a 60-day public consultation on regulating exchange-traded funds using new asset classes and investment strategies.
- The review could affect future ETF approvals as issuers introduce more specialised crypto and traditional investment products.
- The SEC is seeking feedback on whether existing ETF rules and registration processes remain suitable for evolving products.
The US Securities and Exchange Commission (SEC) has opened a 60-day public consultation on whether existing rules adequately regulate exchange-traded funds using new asset classes and investment strategies.
The review follows rapid growth in the ETF market, with assets under management increasing from about US$4 trillion in 2019 to more than US$12 trillion by the end of 2025, according to the SEC.
The consultation seeks public feedback on whether current ETF regulations remain appropriate and whether changes to the registration process are needed as new products enter the market.
The SEC said the review covers ETFs investing in innovative asset classes or using new investment strategies, while market participants can submit comments during the consultation period before the agency considers any regulatory changes.
The request follows a separate consultation with the Commodity Futures Trading Commission (CFTC) on aligning portfolio margin rules across securities and derivatives markets, and as the announcement relates to a regulator rather than a listed company there was no share price reaction to report.
Crypto ETF issuers have recently introduced products tied to staking, stablecoin reserves and income strategies, including funds from ProShares, Grayscale, BlackRock, Goldman Sachs) and Franklin Resources.
Asset managers have also expanded into mixed-asset strategies, with Bitwise launching an actively managed ETF combining Bitcoin (CRYPTO:BTC) with gold, precious metals and mining equities, reflecting broader experimentation across the ETF market.
At the time of reporting, Bitcoin price was $58,517.81.
