SEC Reviews ETF Rules, Seeks Public Comment on New Products Including Crypto Funds
Summary
- The U.S. SEC said it is reviewing the regulatory framework for new ETFs, including cryptocurrency ETFs, and will gather public comment for 60 days.
- The agency said the comment process is meant to broadly reassess the standards and process for making new ETFs available to investors in response to market changes.
- Analysts said the process is aimed at building a basis to expand the range of assets eligible for trading through ETFs, with a key issue being whether ETF issuers that do not handle traditional assets can still qualify as an investment company.
Forecast Trend Report by Period
The U.S. Securities and Exchange Commission is reviewing the regulatory framework for new exchange-traded funds, including cryptocurrency ETFs.
CoinDesk reported on June 30 that the SEC has launched a 60-day public comment period on an automated approval system for new ETFs. The review is intended to address market changes and reassess the standards and process for making new ETFs available to investors.
SEC Chair Paul Atkins said in a statement that ETF innovation depends on a regulatory framework that is consistent, transparent and efficient. The process seeks public input on how the U.S. ETF market can continue to grow and innovate while working effectively for investors, he added.
Analysts said the SEC is using the process to build a basis for broadening the range of assets that can be traded through ETFs. Unlike mutual funds, ETFs can be bought and sold freely on exchanges, making them easier to access. One key issue in the review is whether ETF issuers that do not handle traditional assets can still meet the definition of an investment company.
