SEC · Federal Reserve (FED) · Cointelegraph
SEC seeks public comment on regulating next generation of ETFs
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The request from the US agency seeks feedback on how emerging ETF structures and investment strategies should be regulated as issuers roll out increasingly specialized products.
Key facts
- Exchange-traded funds have grown rapidly in recent years, with assets under management increasing from about $4 trillion in 2019 to more than $12 trillion at the end of 2025, according to the SEC
- In June, ProShares introduced the GENIUS Money Market ETF, a Treasury-focused fund designed around reserve assets permitted under the GENIUS Act for payment stablecoins, while Grayscale launched
- The public comment period will remain open for 60 days following publication in the Federal Register, giving market participants an opportunity to weigh in before the SEC considers potential
- Earlier this month, Franklin Templeton proposed two ETFs that would systematically reinvest stock dividends into Bitcoin-linked investments, combining US equities with a rules-based Bitcoin allocation
Summary
The US Securities and Exchange Commission (SEC) has requested public comment on exchange-traded funds (ETFs) investing in novel asset classes or using new investment strategies, as the agency reviews how such products should be regulated. The consultation seeks feedback on whether existing rules adequately address novel ETFs, how such funds should be regulated and whether changes to the registration process are needed as new products enter the market. According to the regulatory agency, the request focuses on funds investing in innovative asset classes or employing new investment strategies, where it is evaluating whether existing regulations remain appropriate. The public comment period will remain open for 60 days following publication in the Federal Register, giving market participants an opportunity to weigh in before the SEC considers potential regulatory changes.