SEC Reviews ETF Rules After Surge in Crypto Funds

The Securities and Exchange Commission on Tuesday published a request for public comment on how to regulate so-called “novel ETFs” and whether its process for registering exchange-traded funds needs revision following a recent surge in crypto ETF approvals. The agency set a 60-day deadline for submissions.

The document asks for input on a range of questions, including whether a standardized framework for listing funds that meet specific criteria should apply, and whether some novel ETFs must register as investment companies. Registration under the Investment Company Act of 1940 would subject a fund to added disclosure and governance requirements.

Since Paul Atkins became SEC chair in April 2025, the agency has approved dozens of crypto ETFs beyond those that track bitcoin and ethereum. New products tracking tokens such as SOL and DOGE have begun trading, increasing the number of digital-asset ETFs available to investors.

A separate group of proposals, prediction-market ETFs that would track political and economic outcomes, remains unresolved. The commission has delayed action on several of those filings while it examines legal and market-structure questions. Last month Atkins said the agency plans to review those applications in a “transparent and thoughtful manner.”

In a statement, SEC Chair Paul Atkins wrote, “The Commission’s request for comment seeks input from the public on how the U.S. ETF market can continue to grow and innovate while serving investors effectively, and I look forward to reviewing feedback from market participants as we evaluate how to best respond to recent market changes.”

The SEC’s solicitation requests comment on policy, legal and market-structure considerations. Responses will inform whether the commission proposes rule changes, alters its registration review process, or issues guidance for exchanges and issuers on listing new ETF types.