SEC opens 60-day ETF review; $12T market and novel funds in scope

$12T in ETF assets is the market context behind the SEC's new request for public comment on novel exchange-traded funds. The Commission said U.S. ETF assets increased from $4T in 2019 to more than $12T at the end of 2025, and asked market participants to comment on funds that invest in innovative asset classes or use novel strategies.

The release is regulatory rather than enforcement-driven, but it is market-relevant because it frames how new ETF structures may be registered and supervised. The SEC said the request covers the status of certain novel ETFs as investment companies, the regulation of novel ETFs and how the ETF registration process can continue to operate effectively.

SEC Chair Paul S. Atkins said the request seeks input on a consistent, transparent and efficient framework for ETF innovation. Brian Daly, Director of the Division of Investment Management, tied the review to the expansion of ETFs and the emergence of new strategies. The public comment window will remain open for 60 days after the request is published in the Federal Register.

The next point to watch is whether crypto, private-credit, derivatives-heavy and other nontraditional ETF proposals receive a clearer path or tighter boundaries. For issuers, the signal is procedural: the Commission is asking questions before changing rules. For investors, the important number is the asset base already at stake across the ETF wrapper.

Source: SEC press release 2026-60.

Not investment advice. Verify all figures with primary sources before acting.