The U.S. Securities and Exchange Commission has begun revamping its regulatory framework for “emerging exchange-traded funds,” including products linked to cryptocurrencies and prediction markets.

On July 1, blockchain media outlet CoinPost reported that the SEC began a public comment process on emerging ETFs on June 30.

The review includes ETFs linked to crypto assets, single-stock strategy ETFs, high-leverage ETFs and event-contract ETFs tied to prediction markets. The SEC flagged as key issues whether these products qualify as “investment companies” under the U.S. Investment Company Act and whether there is a need to extend the 75-day and 60-day review periods that apply for automatic effectiveness under current ETF registration rules. Comments are due up to 60 days after publication in the Federal Register.

The move is seen as an effort to clarify how to handle a recent surge in emerging ETFs within the existing regulatory framework. Prediction-market ETFs, in particular, have seen listings repeatedly delayed. The SEC previously sought additional information on multiple applications for prediction-market-linked ETFs and delayed their effectiveness. The targets are said to be 3 firms and more than 24 products, with issues centered on product design and disclosure content.

Market surveillance and jurisdictional issues have also surfaced around prediction-market ETFs structured to bet on political and economic events. Concerns about insider trading, along with jurisdictional disputes between the U.S. Commodity Futures Trading Commission and state governments, also form part of the backdrop. The SEC has continued to take a more cautious approach to this group of products.

SEC Chairman Paul Atkins (폴 앳킨스) said he hopes to hear from market participants so that the ETF market can continue growth and innovation while effectively serving investors. He previously said he would review prediction-market ETFs in a transparent and prudent manner. This is closer to a message of resetting review standards within the system rather than blocking emerging ETFs outright.

An impact is also expected on the crypto ETF market. According to the original text, since Atkins took office in April 2025, dozens of emerging ETFs have been approved, including spot ETFs linked to altcoins such as Solana, Dogecoin and HYPE. As the product universe has expanded quickly, the need has grown to assess whether existing registration procedures and disclosure standards are sufficient.

The market’s size is also increasing the need for a rules overhaul. By the SEC’s count, net assets in U.S. ETFs expanded to more than $12 trillion at the end of 2025 from a level above $4 trillion at the end of 2019. Over the same period, the number of ETF listings rose to more than 4,600 from about 1,900. As emerging ETFs account for a larger share of overall market growth, the signal can be read as regulatory consistency becoming more important than the speed of approvals.

A key point to watch is whether the comment process leads to changes in actual review procedures. If the automatic effectiveness period is extended, listings for new crypto ETFs and prediction-market ETFs could slow. If standards become clearer, uncertainty over product design and disclosure scope could ease. That has made how the SEC adjusts the combination of investment-company status, disclosure levels and review periods the next variable in the emerging ETF market.