SEC seeks public comment on regulating next generation of ETFs
The SEC is seeking public comment on how to regulate ETFs that invest in novel asset classes or use new investment strategies. It wants feedback on whether current rules are sufficient, how these funds should be overseen, and whether the registration process should change as more complex products enter the market. The comment period will last 60 days after Federal Register publication. The consultation comes as ETFs have grown sharply, with assets rising from about $4 trillion in 2019 to over $12 trillion by the end of 2025. It also follows a separate SEC-CFTC request on harmonizing portfolio margin rules. Crypto ETF issuers are increasingly launching more specialized products, including staking, reserve-based, options-based, and multi-asset strategies that blend digital assets with traditional securities.
