The SEC launched a 60-day public consultation on July 1, 2026 on its regulatory framework applicable to new ETFs, particularly those exposed to crypto. The US ETF market jumped from $4 trillion to $12 trillion between 2019 and 2025, driven largely by the automatic activation process that the SEC is now seeking to rethink.
In brief
- The SEC issued a request for comment on its automated ETF activation system on July 1, 2026, open for 60 days.
- The US ETF market grew from $4 trillion in 2019 to $12 trillion in 2025 thanks to this simplified procedure.
- The reform could open up trading to crypto-based ETFs, event-driven contracts and individual stock strategies.
Why is the SEC putting ETFs back on the table?
The Securities and Exchange Commission (SEC), the US federal regulator of financial markets, has just published a request for official comments on its automatic activation system for ETFs.
For several years, this mechanism has allowed certain funds to join the markets without going through a request for complete regulatory exemption. Until now reserved for the most conventional products, its scope is now the subject of debate.
The consultation targets in particular ETFs whose primary strategy is based on assets that US law does not register as traditional securities, a category which includes US Spot Bitcoin ETFs which the SEC authorized in January 2024.
Behind the technical questions about entry into force deadlines and disclosure obligations, it is the entire architecture of the ETF framework that is at stake.
What concrete impact for crypto and alternative assets?
Paul Atkins, president of the SEC since the start of 2026, formulated the issue clearly in a press release:
The consultation aims to gather feedback on how the U.S. ETF market can continue its growth and innovation while effectively serving investors.
Under his leadership, the agency has made the adoption of new technologies a stated priority, with parallel work on the tokenization of financial securities.
Jaret Seiberg, political analyst at TD Cowen, interprets this approach as building a case for future decisions. The consultation would allow the SEC to document market support before officially authorizing cryptoasset-based ETFs, event-driven contracts, or individual stock strategies.
However, one question remains open, and the SEC explicitly asked it in its document: can an ETF provider investing primarily in non-securitized assets qualify as an investment company within the meaning of US law?
The answer to this question will directly determine the accessibility of future products to the general public.
In short, the SEC does not close a file, it opens a new one. With this consultation, the agency prepares the regulatory ground for more diversified ETFs, from crypto assets to event-driven contracts. The dynamic is there: a market tripled in six years, a president favorable to innovation, an activation procedure to be modernized. Industry players have 60 days to weigh in on the debate, and potentially shape the rules for the next generation of ETFs in the United States.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
