SEC Raises Red Flags Over Crypto ETFs Offering Staking Rewards
REX Financial and Osprey Funds’ plans to launch US crypto ETFs offering staking rewards have encountered regulatory challenges, even after an initial nod from the Securities and Exchange Commission (SEC).
What Happened: The proposed ETFs, designed to track Ethereum ETH/USD and Solana SOL/USD, are facing scrutiny from US regulators.
The regulators are questioning if these ETFs fulfill the legal criteria of ETFs under federal securities law. The SEC expressed its concerns in a letter to ETF Opportunities Trust, the legal entity issuing the ETFs, on Friday.
The SEC pointed out potential problems with the funds’ registration statement and suggested that the ETFs’ status as investment companies could be misleading. Greg Collett,…
