The SEC has acknowledged the failure of the crypto-ETF and is developing a new approval process—confidential applications are possible.

SEC official Brian Dealy admitted in an interview with Bloomberg: “We’ve done a poor job with cryptocurrencies and lost trust, but we’re working to restore it and create an orderly process.” According to him, the regulator receives about 200 ETF applications per month, including unconventional products such as prediction markets.

The SEC is exploring a more robust approval procedure. One option is confidential applications to protect innovative ideas from being copied. The regulator understands that approving an ETF for prediction markets could instantly generate 500 to 1,000 applications.