The ETF industry has been on a relentless expansion spree this year, with Wall Street's machine pumping out innovative fund products at an unprecedented pace. The sector is sitting on a staggering $13 trillion in assets, seemingly unstoppable.

Then came Tuttle Capital with a bold proposal: an exchange-traded fund designed to track something rather unconventional—the perceived value of political access. Sounds intriguing from an innovation standpoint, right? Not so fast.

This is where things get interesting. The machine that's been breaking through barrier after barrier suddenly hit a real wall. Regulators took one look at this idea and basically said: hold up. It's a stark reminder that even in a market obsessed with pushing boundaries, there are still lines that won't be crossed.

This clash reveals something crucial about financial innovation in today's landscape. You can create almost anything, but tracking the tangible value of political influence? That's apparently where the guardrails are actually enforced. It raises questions about what markets should and shouldn't commodify, and whether all innovations are worth pursuing just because they're possible.