SEC Scrutinizes Staking ETFs: Impact on Ethereum & Solana Access

The U.S. Securities and Exchange Commission (SEC) is questioning the structure of proposed exchange-traded funds (ETFs) that aim to offer investors exposure to Ethereum and Solana through staking rewards. This inquiry could significantly impact how these popular cryptocurrencies are accessed by investors in traditional financial markets. Reportedly, the SEC is engaging with firms like REX Financial and Osprey Funds, who are seeking to launch ETFs that would incorporate staking activities for yield generation. The core of the SEC’s concerns lies in whether these products would qualify as ‘investment companies’ under federal securities law.