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The SEC has opened a public comment process on how it should regulate newer exchange-traded funds that invest in less traditional assets or use novel strategies.
The review brings crypto funds, event-contract ETFs, leveraged products and blockchain-linked strategies into a policy debate as issuers push the ETF wrapper into new markets.
Crypto, Leverage and Event ETFs Are in Scope
The agency said novel ETFs can include products tied to crypto assets, commodity-focused instruments, single-stock strategies, private assets, event contracts, heightened leverage and blockchain-enabled opportunities.
That list matters for digital asset issuers because the ETF market has become one of the main routes for bringing crypto exposure into brokerage accounts. It also comes as prediction-market products test the line between investment exposure and event-based trading.
The SEC is asking whether some ETFs that mainly hold assets outside the Investment Company Act’s securities definition should be treated as investment companies at all.
That question could affect how future crypto and event-contract funds are structured, registered and listed. A product may look like an ETF to investors, but its underlying assets may raise legal questions that the current framework may not clearly address.
Rule 6c-11 Faces Novel ETF Test
The review also focuses on Rule 6c-11, the 2019 ETF rule that allowed many funds to launch without seeking individual exemptive relief from the SEC. The agency said ETF assets grew from more than $4 trillion at the end of 2019 to more than $12 trillion at the end of 2025.
The number of ETFs also rose from almost 1,900 to more than 4,600 over the same period. The SEC is now asking whether Rule 6c-11 should be amended for novel ETFs. Possible changes include portfolio requirements, diversification limits, concentration limits, issuer-specific limits or restrictions on certain strategies and assets.
Rule 485 Timing Faces SEC Scrutiny
The agency is also looking at Rule 485, which lets some ETF filings become effective automatically after 75 or 60 days. The SEC asked whether those windows are too short when a product raises unresolved legal or operational issues.
That question matters for issuers seeking to bring crypto, leverage, event-contract or blockchain-linked products to market quickly. A longer or more restrictive review process could give the agency more time to intervene before novel ETF filings become effective.
60-Day Comment Window Could Shape ETF Filings
The comment period will stay open for 60 days after the request is published in the Federal Register. The review does not approve or reject any individual ETF.
It gives issuers, exchanges, investors and market makers a chance to influence how the SEC handles the next wave of products before more crypto, leverage and event-contract funds reach the market.
For crypto firms, the process could be important even without an immediate rule change. The SEC is building a public record on which assets belong in ETFs, how fast those funds should reach investors and when the agency should have more time to intervene.
