By: Jackie Hallihan
The SEC closed September with two major announcements that signal a more modern, collaborative approach to oversight. Both underscore a simple truth: regulators are prioritizing modernization and coordination to help markets grow without compromising accountability.
ETF Share Class Relief
Exchange-traded funds continue to surge, with U.S. assets reaching $12.2 trillion as of August 2025. Alongside that growth, fund sponsors have been calling for one major update: the ability to offer both mutual fund and ETF share classes within a single fund structure.
That change is now in motion. On September 29, Commissioner Mark T. Uyeda announced proposed ETF Share Class Relief, calling it a long-overdue modernization of the SEC’s investment company framework.
“It is a signal that the Commission is willing to reexamine outdated constraints, embrace innovation, and consider relief that could benefit investors, fund sponsors, and markets alike,” Uyeda said.
The proposed framework would allow a single fund to offer both exchange-traded and traditional mutual fund shares — a structure that balances flexibility with investor safeguards. The design includes board oversight, advisor reporting, conflict monitoring, and enhanced disclosure requirements.
For fund managers, this could streamline product offerings and reduce administrative complexity, aligning regulation with how the market already operates.
Toward a New Era of Regulatory Harmonization
At the same time, SEC Chair Paul Atkins used the SEC–CFTC Joint Roundtable on Regulatory Harmonization to reinforce another major theme: collaboration.
Atkins called it “a new era of harmonization,” focused on better coordination between the two agencies to reduce redundant oversight while preserving their distinct missions.
“Our goal is not merger, but harmony,” he said. “We’re building a framework where the agencies coordinate seamlessly to reduce duplicative regulation, support U.S. innovation, and allow investments to thrive.”
This direction suggests a more efficient regulatory landscape — one where modernization and investor protection can move in tandem. For firms, it’s an invitation to stay informed, adaptable, and ready for the evolving balance between innovation and oversight.