SEC doubts crypto ETFs with staking
The US stock exchange supervision SEC has expressed concerns that two planned crypto ETFs that offer staking rewards may not meet the legal requirements for stock markets traded.
The affected products from Rex Financial and Osprey Funds aim to investors through the Staking to enable additional income from Ethereum and Solana. Although the funds have already received a preliminary registration, the SEC now questions whether they may be legally considered ETFs. This works from a report by Bloomberg out.
Regulatory concerns
The SEC argues that the integration of staking mechanisms may have dropped the funds outside the definition of a traditional ETF after the 1940 investment company. In particular, there is fear that the yields from staking could be considered non -registered securities, which would result in additional regulatory requirements. This uncertainty could lead to a delay for the funds.
The concerns of the SEC could have far-reaching consequences for the crypto industry. Staking is a central part of many Proof-of-Stake-Blockchains like Ethereum and Solana. If the SEC maintains its restrictive attitude, future financial products with similar mechanisms could also encounter regulatory hurdles. This could brake the innovation in the field of crypto finance products and unsettle investors.
Reactions from the industry
Representatives of the crypto industry are concerned about the attitude of the second. They argue that the integration of staking in ETFs represents a natural further development and investors offers additional options. However, the current uncertainty could lead to companies hesitation of developing new products for fear of regulatory setbacks.
The case again shows the persistent area of tension between financial innovation and regulatory caution. While providers such as Rex and Osprey try to make crypto products more attractive and earlier, the SEC continues to pursue a conservative interpretation of existing financial laws. Many industry experts therefore call for revised legislation that takes into account the special features of digital assets – especially when it comes to active components such as staking that have so far not had any equivalent in classic financial products.
