SEC opens 60-day comment period on novel ETF rules

The U.S. Securities and Exchange Commission has opened a 60-day public consultation on its regulatory framework for novel exchange-traded funds, including products tied to prediction markets and other non-traditional assets. The move, announced on June 30, 2026, by SEC Chairman Paul Atkins, signals a comprehensive review of how the agency oversees innovative financial products that fall outside conventional ETF structures.

The review was initiated as the SEC paused the launch of approximately 24 proposed ETFs, including several prediction market funds whose applications have been pending since February 2026. Asset managers Roundhill, Bitwise, and GraniteShares have filed proposals for funds that would track contracts on platforms like Polymarket, allowing investors to gain exposure to the outcomes of events such as elections or economic data releases. Some filings warn that an adverse event outcome could lead to near-total loss of investment.

In its request for comment, the SEC is seeking input on whether funds investing primarily in assets that are not securities-such as prediction contracts or certain crypto assets-qualify as "investment companies" under the Investment Company...