SEC · CoinDesk
The U.S. Securities and Exchange Commission is reexamining how it approaches novel exchange-traded funds
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The agency's new 60-day request for comments, billed as a response to market changes, poses questions about how it allows new ETFs to open to investors, and analysts suggest the SEC is making a case for a wider range of assets trading under such funds, which, unlike products such as mutual funds, can be traded at…
Key facts
- The current process allows ETFs that meet certain conditions to jump into the markets without requiring a complicated request for exemption from the regulator, and that approach has seen an explosive
- Innovation in exchange-traded funds depends on a consistent, transparent, and efficient regulatory framework,” said SEC Chairman Paul Atkins in a statement
- It is designed to build a record that could be used to justify policy changes in the future that would permit ETFs focused on a broader universe of assets," said TD Cowen policy analyst Jaret
- Market participants have raised questions regarding whether novel ETFs with a principal investment strategy to invest in assets that are not securities under the Investment Company Act
Summary
The U.S. Securities and Exchange Commission may be opening further to novel exchange-traded funds involving crypto and other less traditional assets, issuing a request for comment on potential changes to its ETF policies. The request poses many questions about how the agency allows certain ETFs to list without having to jump through regulatory hoops. Securities and Exchange Commission is reexamining how it approaches novel exchange-traded funds, including those focused on crypto, and is inviting public input on its automated system to activate them.