The Future of ETFs: Balancing Blockchain Innovation With Regulatory Guardrails

VanEck, a top-10 ETF issuer with $132.9 billion in assets under management as of June 30, 2025, met with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on September 26, 2025, to discuss the integration of tokenization and staking into regulated fund structures. The session, part of an ongoing dialogue between regulators and market participants, focused on practical and regulatory challenges arising when traditional ETFs transition to blockchain-based systems. VanEck submitted a detailed agenda and supporting materials, emphasizing the need for updated rules to address emerging crypto-era productsVanEck Urges SEC to Update Rules for Tokenized ETFs^[1].

Central to the discussions were questions about how tokenization affects investor protections and market structure. VanEck requested clarity on whether existing regulations apply when fund shares are represented as blockchain tokens, particularly for tokenized ETFs. The firm also sought guidance on the SEC’s proposed Generic Listing Standards for commodity- and crypto-based exchange-traded products, including their applicability to liquid staking tokens and how liquidity risks tied to staking should be managed within ETF wrappersVanEck consults SEC Crypto Task Force on tokenization of ETFs^[2]. The meeting underscored growing industry interest in leveraging blockchain to enhance transparency, efficiency, and accessibility in investment productsVanEck Meets SEC Crypto Task Force – Tokenization, DeFi, and …^[3].

Broader regulatory topics were also raised, including the treatment of decentralized finance (DeFi) platforms, tokenized securities, and initial coin offerings (ICOs) under current securities laws. VanEck highlighted the need for updates to the Advisers Act Custody Rule to address digital asset storage and management. The firm proposed Multi-Party Computation (MPC) technology as a secure solution for safeguarding private keys, urging the SEC to consider how technology-driven custody models should be regulatedVanEck Talks SEC on Staking, Tokenization, and ETF Regulations^[4]. These proposals reflect industry efforts to align innovation with investor safeguards while navigating evolving compliance frameworksNate Geraci Highlight VanEck-SEC Meeting on ETF Tokenization^[5].

The meeting’s agenda, shared by Nate Geraci of The ETF Store, emphasized the transformative potential of tokenized ETFs. Geraci noted that the discussions could shape the future of ETFs, enabling blockchain-based structures with programmable compliance, instant settlements, and enhanced transparency. He described the meeting as a pivotal moment, signaling regulators’ willingness to engage with market leaders on integrating digital assets into mainstream financeNate Geraci Highlight VanEck-SEC Meeting on ETF Tokenization^[6]. The session also highlighted global implications, as regulatory developments in the U.S. could influence ETF structures in Europe, Asia, and North AmericaVanEck Meets SEC Crypto Task Force – Tokenization, DeFi, and …^[7].

Participants from VanEck included Wyatt Lonergan (General Partner), Kyle F. DaCruz (Director of Digital Assets Product), and Matthew Sigel (Head of Digital Assets Research), among others. Their engagement reflects the firm’s proactive approach to shaping policy discussions and providing regulators with market insights, technology demonstrations, and custody solutionsVanEck Urges SEC to Update Rules for Tokenized ETFs^[8]. The SEC’s Crypto Task Force has previously held similar meetings with firms like Term Finance, indicating a systematic effort to refine regulatory frameworks for crypto productsVanEck consults SEC Crypto Task Force on tokenization of ETFs^[9].

The outcome of these discussions could redefine how fund managers design and list tokenized ETFs, potentially accelerating blockchain adoption in the asset management sector. By addressing liquidity risks, custody innovations, and DeFi integration, regulators and industry players are working toward a balanced approach that fosters innovation while maintaining market integrityVanEck Talks SEC on Staking, Tokenization, and ETF Regulations^[10].