SEC Challenges Ethereum and Solana Staking ETFs - Delayed Launch Expected

The US SEC has raised concerns regarding the legality of ETFs on Ethereum and Solana by REX Financial and Osprey Funds. These funds generate income through staking, but their classification as ETFs under federal law remains uncertain. Consequently, the launch has been delayed pending resolution of SEC issues. SEC Commissioner Caroline Crenshaw criticized the agency for inconsistent stances on whether crypto assets are securities, noting that recognition varies based on convenience. Bloomberg comments that despite these hurdles, ETFs with staking are likely to emerge eventually; it’s only a matter of time.