SEC Opens Formal Review of Novel ETF Rules Covering Crypto-Asset and Prediction-Market Products

The U.S. Securities and Exchange Commission has opened a formal review of its rules for “Novel ETFs,” with public comments due within 60 days of publication in the Federal Register. According to NS3.AI, the “Novel ETF” category includes crypto-asset funds as well as products linked to prediction markets. SEC Chair Paul Atkins said some fund sponsors have voluntarily delayed a number of novel ETF launches while the agency considers the implications of these products.