The U.S. Securities and Exchange Commission (SEC) expressed concerns about the effectiveness initiation registration documents for Solana (SOL) and Ethereum (ETH) staking exchange-traded funds (ETFs). The review targets products submitted by ETF issuer REX Financial and asset management company Osprey Funds, with the SEC stating that these funds would find it difficult to be recognized as ETFs.
According to Bloomberg, the SEC raised issues with the two funds adopting a 'C-Corporation' structure different from typical ETF formats. This structure is rarely used in ETFs and could potentially conflict with Rule 6c-11, known as the 'ETF Rule', which clearly defines appropriate corporate structures for ETF classification.
In a recently published letter, the SEC stated, "There are unresolved questions about whether the fund would meet the investment company definition under the Investment Company Act if operated as proposed." They further emphasized that "disclosures regarding the fund's status as an investment company in the registration documents may be misleading."
This response is interpreted as the SEC reaffirming its cautious approach to cryptocurrency-based ETFs. Unlike recently approved physical BTC and Ethereum ETFs, new ETFs including staking revenue structures are undergoing more detailed regulatory scrutiny. With regulatory uncertainty continuing, the cryptocurrency ETF industry is expected to develop more meticulous strategies within institutional boundaries.
Real-time news...Go to Token Post Telegram
<Copyright ⓒ TokenPost, Unauthorized Reproduction and Redistribution Prohibited>
