WASHINGTON, June 30, 2026 — The U.S. Securities and Exchange Commission has issued a request for public comment on exchange-traded funds investing in innovative asset classes or using novel investment strategies, including crypto assets, as the agency considers whether changes to the regulatory framework could better support innovation while protecting investors and maintaining fair, orderly and efficient markets.
The request for comment seeks feedback on a broad range of regulatory issues affecting Novel ETFs, which the SEC says include funds investing in crypto assets, commodity-focused instruments, single-stock strategies, heightened leverage, blockchain-enabled opportunities, private assets, event contracts and combinations of those strategies.
SEC Chairman Paul S. Atkins said the consultation is intended to help determine how the U.S. ETF market can continue to innovate within a consistent, transparent and efficient regulatory framework. The Commission noted that ETF assets have grown from more than $4 trillion at the end of 2019 to more than $12 trillion by the end of 2025.
Investment company status
One of the consultation’s central questions is whether certain Novel ETFs—particularly those whose principal investment strategy involves assets that may not qualify as securities under the Investment Company Act of 1940—should be treated as investment companies and regulated under that framework.
The SEC is seeking comment on how existing legal tests should apply to such products and whether additional regulatory clarity is needed for ETFs whose primary exposure is to assets outside traditional securities markets.
ETF regulatory framework
The Commission is also asking whether Rule 6c-11, which established a streamlined regulatory framework for most ETFs in 2019, should be amended to address novel products.
Among other issues, the SEC is requesting feedback on whether additional portfolio requirements, diversification standards, concentration limits or restrictions on particular investment strategies or asset classes should apply to Novel ETFs. It is also asking whether investors require additional disclosures to distinguish these products from more traditional ETFs.
Registration process
The consultation also examines whether the ETF registration process remains appropriate for increasingly complex products.
The SEC is seeking comment on whether automatic effectiveness periods for certain ETF registration amendments should be extended, whether confidential pre-filing consultations should be introduced, how unresolved staff comments should be handled, and whether disclosure requirements should change for Novel ETFs before launch.
Public consultation
The Commission said it welcomes comments from funds, advisers, investors and other market participants, as well as empirical data and practical examples that may assist its evaluation.
The public comment period will remain open for 60 days following publication of the request for comment in the Federal Register.
Why it matters
The consultation signals that the SEC is undertaking a broad review of whether its ETF regulatory framework remains appropriate as increasingly complex investment products enter the market.
For the digital asset industry, the request is particularly significant because crypto assets are expressly identified among the innovative asset classes under review. The Commission’s questions could influence how future crypto asset ETFs and other innovative exchange-traded products are structured, reviewed and brought to market, while also shaping broader regulatory expectations for innovative exchange-traded products.
