WASHINGTON, June 30 (Reuters) – The U.S. Securities and Exchange Commission on Tuesday called for public comment on regulating “novel” exchange-traded funds backed by assets including increasingly popular prediction markets, two months after delaying approval of dozens of such funds that depend on outcomes in real-world events like elections.
The announcement comes as the SEC and fellow regulator Commodity Futures Trading Commission contend with oversight of the burgeoning prediction market industry, which is quickly growing even as the legal environment surrounding it remains unsettled.
In May, SEC Chairman Paul Atkins said fund sponsors had delayed the effectiveness of some novel ETFs while the agency considered their implications. In a statement on Tuesday, Atkins said public comment would help the SEC determine how ETFs can grow “while serving investors effectively.”
The SEC said it would accept comments for 60 days prior to any next steps.
(Reporting by Douglas Gillison and Daphne Psaledakis; Editing by Chizu Nomiyama)
