Sec Questions Ethereum, Solana Etfs' Investment Company Status on May 30

On May 30, the SEC questioned whether proposed Ethereum and Solana ETFs from REX Shares and Osprey Funds meet the legal definition of an investment company. The SEC raised concerns about the REX-Osprey ETH and SOL ETFs' registration and exchange listing eligibility. The agency's letter to ETF Opportunities Trust highlighted unresolved questions about the funds' structure and compliance with the Investment Company Act of 1940. The SEC indicated the ETFs might not qualify as investment companies under federal law. They also suggested the funds may have improperly filed under Form N-1A and might not meet Rule 6c-11 conditions. The SEC's staff will consider further actions to ensure compliance with federal securities laws if concerns remain unresolved. This announcement followed staff guidance on Thursday clarifying that certain crypto staking types do not involve securities offerings. Commissioner Caroline Crenshaw dissented, stating the guidance continues to sow uncertainty around the law.