SEC Seeks Comments on Rules for Next-Gen ETFs
The SEC opened a 60-day public comment period on how ETFs that invest in novel assets or use new strategies should be regulated; comments are due 60 days after Federal Register publication.
The Securities and Exchange Commission opened a 60-day public comment period seeking input on how exchange-traded funds that invest in novel asset classes or use new investment strategies should be regulated. The comment window begins on the date the notice appears in the Federal Register.
The agency asked market participants to address whether existing rules cover these next-generation ETFs and whether changes to the registration process are needed. The SEC identified specific topics for feedback, including disclosure, trading, custody, valuation and potential investor-protection safeguards.
The agency cited rapid growth in US-listed ETF assets under management, which rose from about $4 trillion in 2019 to more than $12 trillion at the end of 2025, and said greater product complexity is a factor in the review.
The notice points to a range of newer product designs that have appeared in filings and launches. Examples include funds tied to staking rewards, stablecoin reserve structures, options-based Bitcoin income strategies and blended portfolios that mix cryptocurrencies with traditional securities and precious metals.
Issuers have filed or launched specific products in recent months. In June, ProShares introduced the GENIUS Money Market ETF, designed around reserve assets permitted for payment stablecoins. Grayscale launched a Hyperliquid Staking ETP that seeks staking rewards. BlackRock proposed an options-based Bitcoin income ETF in January, and Goldman Sachs filed a covered-call Bitcoin proposal in April. Franklin Templeton has proposed ETFs that would systematically reinvest dividends into Bitcoin-linked instruments. Bitwise brought an actively managed ETF pairing Bitcoin with gold and mining equities.
The SEC’s request for comment follows a joint request by the SEC and the Commodity Futures Trading Commission seeking feedback on harmonizing portfolio margin rules across securities and derivatives markets.
Comments must be submitted within 60 days of the Federal Register publication to be considered. After the comment period closes, the SEC will review submissions and may propose formal rule changes, issue guidance or alter registration requirements for particular ETF structures.
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