The Securities and Exchange Commission is taking a fresh look at how cryptocurrency exchange-traded funds and a proposed new class of funds tied to prediction markets should be regulated following a wave of crypto ETF launches.
On Tuesday, the SEC said it is seeking public comment on the regulation of "novel ETFs" and how its current process for registering those funds may need to be changed.
“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," SEC Chair Paul Atkins said in a statement.
Since Atkins took the helm at the SEC in April 2025, the agency has greenlit dozens of crypto ETFs beyond ones tracking bitcoin and ethereum, which were declared effective under former SEC Chair Gary Gensler. Now, crypto ETFs tracking assets from SOL to DOGE are live.
Attention has turned to prediction market ETFs tied to political and economic outcomes. The SEC has not yet declared those funds effective and has delayed several proposals. Last month, Atkins said the agency plans to consider them in a "transparent and thoughtful manner."
In its request for comment on Tuesday, the agency asked about a standardized framework for listing ETFs if it meets certain criteria should apply to the novel funds and whether they may need to register as an investment company.
The request for comment could lead to rule changes in 2027, said TD Cowen’s Washington Research Group, led by managing director Jaret Seiberg in a note on Tuesday.
“We view this request for comment as leading, as soon as 2027, to the SEC permitting a broader array of ETFs including those based on event contracts, crypto assets and single-stock strategies,” Seiberg said.
Comments to the SEC are due in 60 days.
Updated June 30, 2026, 18:04 UTC: Amended sentences that originally suggested the SEC approved ETF listings and added comments from Jaret Seiberg.
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