Statement Summary
Natasha Vij Greiner, Director of the SEC’s Division of Investment Management, opened the 2025 Conference on Emerging Trends in Asset Management, marking the 85th anniversary of the Investment Company Act and the Investment Advisers Act. This conference gathers industry leaders, regulators, and academics to discuss current trends and challenges in asset management. The industry has dramatically expanded from $2 billion in 1940 to over $39 trillion today, showcasing increased product diversity and innovations like ETFs and thematic funds. Greiner emphasized the importance of balancing investor protections with fostering innovation, particularly in areas such as crypto assets and private markets. The SEC remains committed to engaging with stakeholders to navigate regulatory frameworks that support growth while ensuring investor safety. The discussions aim to reflect on the past to anticipate future challenges and opportunities in this evolving sector.
Original Statement
Good morning. I am Natasha Vij Greiner, Director of the SEC’s Division of Investment Management. Thank you all for joining us in person or online for the 2025 Conference on Emerging Trends in Asset Management.
Before I begin, let me start with the standard disclaimer: my remarks today reflect my views as Director of the Division of Investment Management and do not necessarily reflect the views of the Commission, the Commissioners, or other members of the staff.
This is the third annual Conference on Emerging Trends in Asset Management. These conferences bring together a variety of asset management industry participants, regulators, commentators, and academics for lively discussion on emerging trends in the industry. I am excited to engage on some of the most important and thought-provoking topics facing the asset management industry today. We will discuss how current events and developments over time are shaping the industry. And we will share insights on opportunities and challenges that we are facing together.
This year marks a notable time in the asset management industry’s history, as we commemorate 85 years of the Investment Company Act and the Investment Advisers Act. To say that we have come a long way since 1940 is an understatement. In 1940, the asset management industry held only about $2 billion in assets, which included about $1 billion held by registered funds. Now, 85 years later, the Commission oversees registered funds that together hold more than $39 trillion in assets and registered investment advisers with approximately $145.8 trillion in regulatory assets under management.
The increase in fund assets and advisers’ assets under management tells only part of the story of significant industry expansion. The number of investment products and types of strategies being offered have also proliferated over the decades, showcasing endless innovation. The opportunities for American families to invest in the nation’s securities markets are broader and more varied than ever.
The core protections of the Investment Company Act have been crucial in facilitating the growth of the asset management industry and the introduction of innovative new products over the past decades. Congress recognized that, while fund disclosures are vitally important, there was a need for investor protections beyond disclosure due to investment companies’ unique characteristics and their importance in the national economy. In particular, the Investment Company Act provides investors with specific protections against conflicts of interest, misappropriation of funds, and overreaching with respect to fees and expenses.
The Investment Company Act balances these protections with regulatory authority for the Commission to grant exemptions from these requirements where necessary or appropriate in the public interest and consistent with the protection of investors. Indeed, some describe the exemptive authority as the most important part of the Investment Company Act. Without the Commission’s judicious use of its exemptive authority, the Investment Company Act would have the danger of becoming stale and stifling innovation.
The Advisers Act, for its part, is generally principles-based, especially in comparison to the numerous detailed, substantive requirements imposed by the Investment Company Act. The Advisers Act protects investors primarily by its anti-fraud provisions—the fiduciary duty that an investment adviser owes its clients. This principles-based approach provides appropriate flexibility in light of the wide range of services that investment advisers offer their clients and the large variety of advisory clients.
Both Acts strike an important balance, providing protection to investors and stability to the financial markets, while also proving flexible. The Investment Company Act and the Investment Advisers Act have been truly successful in producing a framework that is protective, but also enables change and innovation.
Legacy of Success and Looking Forward
There is also another legacy of success over the past 85 years—the Commission’s and staff’s prioritization of engagement with the asset management industry and other key stakeholders. We value and appreciate this engagement. This back-and-forth is crucial as we consider our regulatory approach, including how and when to permit innovation in the interest of investors. We should not work in a regulatory vacuum. Engagement is critical to our success.
The Conference on Emerging Trends in Asset Management carries on this tradition of engagement. Today’s conference will feature lively panel discussions on several topics.
Additionally, for our first panel we are fortunate enough to be joined by several former directors of the Division of Investment Management, who will reflect on 85 years of the Investment Company Act and Investment Advisers Act and their time as Director. Their perspective is invaluable as we think about the next 85 years. The past is more than a record of events—it is a predictive tool that can guide us in anticipating potential challenges and help shape the regulatory landscape in a constantly evolving market.
Trends and Innovations in Asset Management
In discussing trends over time in the asset management industry, the evolution of exchange-traded funds (ETFs) is a perfect example of how we can best balance investor protection while still promoting innovation. The evolution of the ETF industry demonstrates the resilience of the Investment Company Act in the face of novel products and strategies.
The Commission approved an exemptive order for the first ETF in 1992. Over the next 25 years, the staff, pursuant to delegated authority, granted over 300 exemptive orders to ETFs. In 2019, the Commission adopted a rule codifying exemptive relief for ETFs to operate without obtaining an order. ETFs now account for approximately 25% of investment companies’ net assets. And since the ETF rule was adopted in 2019, the amount of ETF assets has nearly doubled.
Years of extensive engagement with the industry informed, and ultimately culminated in, the ETF rule. The rule reflected conditions that evolved over time, as the Commission considered new ideas from market participants as part of the exemptive application process. The ETF rule was designed to establish a consistent, transparent, and efficient regulatory framework and to facilitate greater ETF competition and innovation.
Investment in crypto assets is growing and varied. Based on a review of public Form N-PORT data, from December 2022 to December 2024, total net assets of ETFs holding cash and derivative crypto assets have increased from $2.1 billion to $12.7 billion.
Moreover, the staff has observed that funds use a variety of strategies to obtain exposure to crypto assets—in many cases through derivative investments—and that they pursue a variety of objectives with respect to crypto assets. Such objectives include funds that seek to track the return of one or more crypto assets, funds that seek to include exposure to crypto assets as part of a broader overall objective, and funds that seek to provide structured returns (including leveraged or inverse exposure) based on one or more crypto assets.
As the crypto asset industry evolves, the staff expects that funds will continue to seek exposure to crypto assets and pursue new objectives involving crypto assets in innovative ways. With such innovation, however, comes opportunities and challenges. We have seen a rise in novel and complex filings over the past year. We are eager to work with applicants to find a path forward while continuing to ensure that the foundational underpinnings of the Investment Company Act and the federal securities laws are upheld.
To that end, staff is working closely with the Commission’s Crypto Task Force, which was established earlier this year to provide clarity on the application of the federal securities laws to the crypto asset market and to recommend practical policy measures that aim to foster innovation and investor protection.
Much like investments in crypto assets, investments in private markets are also growing. We have observed a dramatic rise in the number and amount of exempt offerings over the past decade. The growth in private markets may not be limited to institutional investors—retail investors may also seek to gain exposure to private market investments, such as private funds through registered funds.
Registered investment companies report $96 billion in holdings of private funds, an increase of $59 billion, or over 150%, since December 2019. Private funds offer diversified exposure to asset classes across private markets, although the federal securities laws generally limit investors in these funds to accredited investors and, in many cases, qualified purchasers.
Conclusion
As I conclude my remarks today, I would like to acknowledge the tireless dedication and unwavering commitment of the Division staff. As we celebrate the 85th anniversary and note the significance and resilience of the Investment Company Act and Investment Advisers Act, it is also critical to acknowledge the people who work day-in and day-out at this agency to uphold the foundational principles of the Acts and ensure that they remain evergreen.
Today’s conference is just one example of their hard work. I’d also like to thank today’s panelists for their time and expertise. Their input will be, I’m sure, thought-provoking, and I look forward to hearing their observations of, and any lessons learned from, emerging trends in asset management.
As the investment management industry continues to grow and innovate, one thing remains constant—the importance of the Commission’s tri-partite mission. As we look ahead and focus on setting guardrails for the asset management industry to innovate, it is important to keep in mind the resilience and adaptability of the existing structural and regulatory protections contained in the Investment Company Act and the Investment Advisers Act. 85 years later, the foundational principles of both Acts still hold strong.
