SEC Seeks Feedback on Novel ETF Regulations Amid Crypto Market Boom
The US Securities and Exchange Commission (SEC) has opened a public comment window on June 30, seeking feedback on novel exchange-traded funds (ETFs) that don't fit traditional regulatory boxes.
These new ETFs include those tied to crypto assets, event contracts, leveraged strategies, and private investments.
The SEC is probing whether these funds can operate under Rule 6c-11, a regulation introduced in 2019 that streamlined the process for most ETFs to enter the market.
Some fund sponsors have voluntarily delayed launching certain novel ETFs as of May 20, 2026, while others are advocating for regulatory frameworks that treat digital assets similarly to traditional ones.
Industry heavyweights such as Grayscale Investments and 21Shares have weighed in on the proposal, with concerns about vague definitions potentially chilling product development.