The Outlook for ETFs: Navigating Blockchain Advancements and Regulatory Frameworks

VanEck, ranked among the top ten ETF providers and managing $132.9 billion in assets as of June 30, 2025, held a meeting with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on September 26, 2025. The discussion centered on incorporating tokenization and staking into regulated investment funds. This meeting, part of an ongoing exchange between regulators and industry representatives, addressed both operational and regulatory hurdles faced when shifting traditional ETFs to blockchain platforms. VanEck presented a comprehensive agenda and documentation, stressing the importance of modernizing regulations to accommodate new crypto-related investment vehicles VanEck Urges SEC to Update Rules for Tokenized ETFs [ 1 ].

Key points included how tokenization might impact investor protection and the structure of financial markets. VanEck sought clarification on whether current rules apply when fund shares are issued as blockchain tokens, especially for tokenized ETFs. The company also asked for more details on the SEC’s proposed Generic Listing Standards for exchange-traded products based on commodities and cryptocurrencies, including their relevance to liquid staking tokens and the management of liquidity risks within ETF structures VanEck consults SEC Crypto Task Force on tokenization of ETFs [ 2 ]. The session highlighted the increasing interest in using blockchain to improve transparency, efficiency, and accessibility in investment offerings VanEck Meets SEC Crypto Task Force – Tokenization, DeFi, and … [ 3 ].

Wider regulatory issues were also discussed, such as how decentralized finance (DeFi) platforms, tokenized securities, and initial coin offerings fit within existing securities regulations. VanEck pointed out the necessity to revise the Advisers Act Custody Rule to better address the custody and management of digital assets. The firm recommended Multi-Party Computation (MPC) technology as a robust method for protecting private keys, encouraging the SEC to evaluate how tech-based custody solutions should be governed VanEck Talks SEC on Staking, Tokenization, and ETF Regulations [ 4 ]. These suggestions demonstrate the industry’s commitment to balancing innovation with investor protection while adapting to changing compliance standards Nate Geraci Highlight VanEck-SEC Meeting on ETF Tokenization [ 5 ].

Nate Geraci of The ETF Store shared the meeting agenda, highlighting the significant impact tokenized ETFs could have on the industry. Geraci observed that these conversations could influence the evolution of ETFs, paving the way for blockchain-based models featuring programmable compliance, real-time settlements, and greater transparency. He described the event as a turning point, showing that regulators are open to collaborating with industry leaders on bringing digital assets into mainstream finance Nate Geraci Highlight VanEck-SEC Meeting on ETF Tokenization [ 6 ]. The meeting also pointed to global ramifications, as regulatory changes in the U.S. may affect ETF frameworks in Europe, Asia, and North America VanEck Meets SEC Crypto Task Force – Tokenization, DeFi, and … [ 7 ].

VanEck’s team included Wyatt Lonergan (General Partner), Kyle F. DaCruz (Director of Digital Assets Product), and Matthew Sigel (Head of Digital Assets Research), among others. Their participation demonstrates the company’s active role in policy development, offering regulators insights into market trends, technology, and custody practices VanEck Urges SEC to Update Rules for Tokenized ETFs [ 8 ]. The SEC’s Crypto Task Force has previously engaged with other firms such as Term Finance, reflecting a broader initiative to refine crypto product regulations VanEck consults SEC Crypto Task Force on tokenization of ETFs [ 9 ].

The results of these talks could transform how asset managers create and list tokenized ETFs, potentially speeding up the adoption of blockchain in asset management. By tackling issues like liquidity risk, custody technology, and DeFi integration, both regulators and industry stakeholders are working towards a regulatory approach that encourages innovation while safeguarding market stability VanEck Talks SEC on Staking, Tokenization, and ETF Regulations [ 10 ].