SEC Requests Feedback on Regulating Crypto and Stock ETFs – Here’s Why

TLDR

• The SEC is asking the public for feedback on how to regulate new types of ETFs, including crypto funds.
• The comment period runs for 60 days after it is published in the Federal Register.
• ETF assets grew from about $4 trillion in 2019 to more than $12 trillion by the end of 2025.
• Crypto ETF issuers are building more complex products, including staking funds and stablecoin-focused funds.
• SEC Chairman Paul Atkins said the goal is to keep ETF rules clear while letting the market keep growing.

The Securities and Exchange Commission has opened a public comment period on how it should regulate new kinds of exchange-traded funds. This includes ETFs built around crypto assets and other less common investment strategies.

The agency wants to know if its current rules still work for these newer funds. It is also asking whether the process for approving new ETFs needs to change.

People and companies have 60 days after the request is published in the Federal Register to send in their comments. After that, the SEC will decide if any rule changes are needed.

Why the SEC Is Looking at ETF Rules Now

ETFs have grown fast over the past several years. Assets in these funds rose from about $4 trillion in 2019 to more than $12 trillion by the end of 2025, according to SEC figures.

SEC Chairman Paul Atkins said the review is meant to keep the ETF market clear and fair for investors. He said the commission wants input on how the market can keep growing in a safe way.

Policy analyst Jaret Seiberg from TD Cowen said the request could set the stage for future rule changes. He said this could open the door to ETFs based on event contracts, crypto assets, and single-stock strategies.

One question the SEC raised is whether an ETF that invests mainly in assets other than securities still counts as an investment company under current law. This matters because it affects how such funds are regulated.

This request follows another recent move by regulators. Last week, the SEC and the Commodity Futures Trading Commission asked for public feedback on aligning margin rules across securities and derivatives markets.

Crypto ETFs Are Getting More Complex

Crypto ETF issuers have moved past simple funds that just track an asset’s price. Newer funds are tied to staking rewards, stablecoin reserves, and other strategies.

In June, ProShares launched the GENIUS Money Market ETF. This fund focuses on Treasury assets allowed under the GENIUS Act for payment stablecoins.

Grayscale also launched a staking product for the crypto asset HYPE. This fund gives investors exposure to price while also aiming to generate staking rewards.

Bitcoin funds are changing too. BlackRock filed for an options-based Bitcoin income ETF in January. Goldman Sachs followed in April with a fund that combines spot Bitcoin holdings with a covered-call strategy.

Franklin Templeton proposed two ETFs this month that would reinvest stock dividends into Bitcoin-linked assets. These funds would combine US stocks with a Bitcoin allocation through futures, options, and other instruments.

Bitwise took a different approach in January. It launched an actively managed ETF that pairs Bitcoin with gold, other precious metals, and mining company stocks.

The SEC’s request for comment covers all of these newer fund types. The agency is trying to figure out if its rules fit funds that no longer look like traditional ETFs.

The 60-day comment window gives investors, fund managers, and other market participants a chance to weigh in before any changes are made.

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