SEC Opens Broad Review of ETF Rules, Seeks Comment on New Products Including Crypto Funds
Summary
- The U.S. SEC said it is reviewing the regulatory framework for new cryptocurrency ETFs and other ETFs, and has begun a 60-day public comment process.
- The SEC said the comment process is intended to respond to market changes and broadly review the standards and process for making new ETFs available to investors.
- Analysts said the SEC is using the process to lay the groundwork for expanding the range of assets that can be traded through ETFs.
The U.S. Securities and Exchange Commission is undertaking a broad review of the regulatory framework for new exchange-traded funds, including cryptocurrency ETFs.
CoinDesk reported on July 30 that the SEC has launched a 60-day public comment period on an automated approval system for new ETFs. The effort is aimed at addressing market changes and reviewing more broadly the standards and process for making new ETFs available to investors.
SEC Chairman Paul Atkins said in a statement that "ETF innovation depends on a consistent, transparent and efficient regulatory framework." The comment process seeks public input on how the U.S. ETF market can continue to grow and innovate while functioning effectively for investors, he added.
Analysts said the SEC is using the process to lay the groundwork for expanding the range of assets that can be traded through ETFs. Unlike mutual funds, ETFs can be bought and sold freely on exchanges, making them more accessible. 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.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.