The U.S. Securities and Exchange Commission (SEC) has launched a public consultation on exchange-traded funds (ETFs) that invest in emerging asset classes or use new investment strategies, as the regulator considers whether changes to the current framework are needed.
The request for comment seeks feedback on how innovative ETFs should be regulated while supporting investor protection, fair and orderly markets, and capital formation.
Among the issues under review are whether certain novel ETFs should be regulated as investment companies, how they should be supervised, and whether the current registration process remains suitable as new products enter the market.
The consultation comes as ETF assets under management have continued to expand rapidly. According to the SEC, the U.S. ETF market grew from approximately $4 trillion in 2019 to more than $12 trillion at the end of 2025.
The public consultation will remain open for 60 days after the request is published in the Federal Register.
The SEC has received a growing number of applications for ETFs investing in digital assets and other non-traditional products in recent years. The consultation could help shape how the agency reviews future applications as fund issuers continue to develop new investment structures.
