US EditionSEC Flags Concerns over Crypto ETFs that Offer Staking Rewards
- On May 30, 2025, the SEC raised legal issues regarding two proposed crypto ETFs designed to provide staking rewards, which were submitted by fund managers associated with REX Financial and Osprey Funds for the US market.
- This followed initial SEC registration approval but arose from doubts whether the ETFs meet the required legal definition of investment companies under federal securities laws.
- The ETFs plan to stake 50% of their assets in Ethereum and Solana tokens to generate rewards, a method the SEC views as complex and potentially misleading for investors.
- Greg Collett, REX's general counsel, stated they do not intend to launch the ETFs until they satisfy the SEC, while analyst James Seyffart said staking ETFs will be allowed eventually despite current hurdles.
- The SEC’s intervention stalls the launch and signals caution over expanding crypto exposure via staking ETFs, though it has eased some regulatory pressure on other crypto products recently.
19 Articles
19 Articles
The world of cryptocurrencies is about to undergo a significant transformation with the imminent launch of the ETFs of stacking for Ethereum and Solana. With the attention of investors focused on these new financial instruments, the expectation is high. These ETFs represent an innovative way to participate in the growth of two of the major blockchain platforms, offering a unique opportunity to maximize performance with stacking, a practice that …
Key Points of the News The US SEC has questioned the legal structure of the new REX Financial and Osprey Funds ETFs that include stake rewards. The funds point to Ethereum and Solana, but the regulatory body doubts that they comply with the legal definition of an ETF. Although their registration had initially been approved, the launch is now on hold until the legal aspects are resolved. Despite the fact that the funds of REX Financial and Osprey…
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