# SEC Official Urges Exchange Listings for Regulated Alternative Funds

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/33784
Published: 2026-10-17T05:59:42.000Z
Updated: 2026-10-17T05:59:42.000Z
Section: Regulation

> Daly’s remarks were separate from the SEC’s Sept. 30 proposals on fund fees, interval-fund repurchases and multiple share classes, which remain open for comment.

Brian Daly, director of the SEC’s Division of Investment Management, urged sponsors of regulated alternative funds to consider exchange listings and portfolio disclosures, saying the steps could widen retail access and improve price discovery.

Speaking at Stanford on Oct. 16, Daly framed the effort around access, transparency and incentives. He said exchange trading could help investors and market intermediaries assess a fund’s value, with potential benefits for liquidity and price discovery. He called the concept “ticker-izaton” and said, “we are actively encouraging sponsors of regulated alts funds to provide position-level transparency.”

That encouragement is separate from the SEC’s Sept. 30 package of proposed rules. The package does not require fund sponsors to list their funds or disclose individual holdings. One proposal would cap certain performance-based fees at 20% of a regulated fund’s net capital gains or net capital appreciation over a specified period or on specified dates. It also calls for independent board oversight and a board finding that the arrangement serves the fund and its shareholders’ best interests.

Other proposals would update interval-fund repurchases and establish a rules-based process for multiple share classes in regulated closed-end funds. Certain fund forms would also have to disclose performance-based compensation. The proposals build on the SEC’s earlier push to widen individual access to private markets. Their comment periods run for 60 days after publication in the Federal Register.

A Sept. 21 SEC order gives one example of tokenized fund shares. It allows ARK Venture Fund to offer an exchange-listed share class and a separate tokenized share class that may trade on alternative trading systems or be quoted on other venues. The order applies to that fund and does not establish a general tokenization framework.

President Donald J. Trump’s 2025 executive order includes actively managed investment vehicles that invest in digital assets in its definition of alternative assets. It directs the SEC, in consultation with the Department of Labor, to consider ways to facilitate access through participant-directed defined-contribution plans. The order does not require retirement plans to offer particular investments, and Daly’s Stanford remarks did not announce a crypto-specific rule.

In early 2026, several large private-credit managers received retail-fund redemption requests above their repurchase limits. The requests led to prorated withdrawals, with some unfilled requests carried forward.