SEC Opens Rule Review for Crypto ETFs and Prediction Market Funds

The Securities and Exchange Commission opened a rule review on Tuesday seeking public comment on the regulation of cryptocurrency exchange-traded funds and a proposed new class of funds tied to prediction markets. The review follows a wave of crypto ETF approvals since SEC Chair Paul Atkins took the helm in April 2025. The agency's request seeks input on how the U.S. ETF market can continue to grow and innovate while serving investors effectively, according to Atkins' statement.

SEC Requests Public Comment on Novel ETF Framework

The SEC asked about a standardized framework for listing ETFs if it meets certain criteria should apply to the novel funds and whether they may need to register as an investment company. Comments are due in 60 days. "The Commission's request for comment seeks input from the public on how the U.S. ETF market can continue to grow and innovate while serving investors effectively, and I look forward to reviewing feedback from market participants as we evaluate how to best respond to recent market changes," Atkins said in a statement.

Crypto ETF Approvals Expand Under Atkins Leadership

Since Atkins took the helm at the SEC in April 2025, the agency has greenlit dozens of crypto ETFs beyond ones tracking bitcoin and ethereum, which were approved under former SEC Chair Gary Gensler. Crypto ETFs tracking assets from SOL to DOGE are now live.

Prediction Market ETFs Remain Under Review

The SEC has not yet approved prediction market ETFs tied to political and economic outcomes and has delayed several proposals. Last month, Atkins said the agency plans to consider them in a "transparent and thoughtful manner."

FAQ

What did the SEC announce on Tuesday regarding ETF regulation?

The SEC announced on Tuesday that it is seeking public comment on the regulation of novel ETFs, specifically cryptocurrency exchange-traded funds and a proposed new class of funds tied to prediction markets. The agency is evaluating how its current process for registering those funds may need to be changed.

How long is the public comment period for the SEC's ETF rule review?

Comments are due in 60 days from the announcement on Tuesday.

What is the status of prediction market ETFs at the SEC?

The SEC has not yet approved prediction market ETFs tied to political and economic outcomes and has delayed several proposals. Last month, SEC Chair Paul Atkins said the agency plans to consider them in a transparent and thoughtful manner.