According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has expressed concerns regarding the registration amendment for the proposed Solana (SOL) and Ether (ETH) staking ETFs by REX Financial and Osprey Funds. The SEC's concern stems from the unique c-corp business structure employed by these funds, which is rarely used for ETFs and conflicts with rule 6C-11, commonly referred to as "the ETF rule." This regulation outlines acceptable corporate structures for exchange-traded funds. In a letter dated May 30, the SEC stated that it has ongoing questions about whether the proposed structure and operation of these funds would meet the definition of 'investment company' under the Investment Company Act. The letter also highlighted that disclosures in the registration statement regarding the funds' status as investment companies could be misleading.
Despite this setback, there is optimism among analysts that an agreement will be reached between ETF issuers and the SEC. Bloomberg ETF analyst Eric Balchunas noted in a post on May 31 that the legal team at REX is confident in resolving the issues. He also mentioned that issuers are eager to be the first to market, pushing the limits to achieve this goal. The approval of altcoin and staking ETFs in the United States is being closely watched by cryptocurrency investors and traders, as these investment vehicles are expected to bring new liquidity from traditional financial markets into the cryptocurrency sector.
The SEC's decision on staking and altcoin ETFs remains delayed, despite recent guidance indicating that cryptocurrency staking does not violate securities laws and is not considered a securities transaction. Bloomberg ETF analyst James Seyffart commented that such delays are expected and typical, noting that most of these filings have final deadlines in October. Seyffart emphasized that it is uncommon for ETF applications to receive approval at such an early stage. Ongoing developments in the ETF space continue to be a focal point for stakeholders in the cryptocurrency and financial markets.#solana #bnb $SOL $ETH
