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The United States Securities and Exchange Commission (SEC) has replied to the recent registration amendment concerning Solana (SOL<\/a>) and Ether (ETH<\/a>) staked exchange-traded funds (ETFs) submitted by ETF provider REX Financial alongside asset management company Osprey Funds, expressing concern that both financial instruments may not meet the qualifications to be classified as ETFs due to their distinctive structures.<\/p>\n A recent article from Bloomberg<\/a> indicated that regulators assert the c-corp organizational structure utilized in the funds<\/a>, which is quite unusual for ETFs, goes against the 6C-11 rule, commonly referred to as “the ETF rule.” This regulation specifies the permissible types of corporate structures for exchange-traded funds. The SEC stated in a letter dated May 30 letter<\/a>:<\/p>\n “As we have communicated to you on multiple occasions, Commission staff still has outstanding questions regarding whether the Funds, if arranged and operated as suggested, would satisfy the definition of ‘investment company’ according to the Investment Company Act.”\u00a0\u00a0<\/p><\/blockquote>\n “Statements within the registration document concerning the Funds\u2019 classification as investment companies might be potentially misleading,” the letter further added.<\/p>\n In spite of the slight hurdle, analysts remain hopeful that the ETF issuers and the SEC will come to a consensus. “REX attorneys indicate they can resolve it,” Bloomberg ETF analyst Eric Balchunas mentioned in a May 31 X post<\/a>. “Issuers are pushing the boundaries strongly in a quest to be the first to market,” the analyst added.<\/p>\n Crypto investors and traders persistently observe the approval of altcoin and staking ETFs<\/a> in the United States, anticipating that the introduction of these financial instruments will inject new liquidity from traditional financial markets into the crypto realm.<\/p>\n Related: <\/strong><\/em>Crypto sector urges SEC to elucidate staking position<\/strong><\/em><\/a><\/p>\n Although the SEC has provided recent guidance<\/a> stating that crypto staking does not breach securities laws<\/a> and does not fall within the scope of securities transactions, the SEC continues to delay the verdict<\/a> regarding staked and altcoin ETFs.<\/p>\nSEC postpones staking ETF decision despite recent guidance<\/h2>\n