In a move that could reshape the future of cryptocurrency-linked investment funds in the United States, the U.S. Securities and Exchange Commission (SEC) has raised legal concerns about plans to launch exchange-traded funds (ETFs) that offer staking rewards to investors.

The two developing companies, "REX Financial" and "Osprey Funds," are seeking to launch funds that track the performance of Ethereum and Solana, providing investors with an opportunity to earn returns through the staking mechanism, which allows participants to support the blockchain network in exchange for rewards.

However, the U.S. regulatory body has expressed sharp reservations, noting that these funds may not meet the legal definition of investment funds under federal securities laws, a prerequisite for their listing on financial markets, according to "Bloomberg," as reported by "Al Arabiya Business."