{"id":29915,"date":"2025-06-03T08:16:56","date_gmt":"2025-06-03T08:16:56","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=29915"},"modified":"2025-06-03T08:16:56","modified_gmt":"2025-06-03T08:16:56","slug":"sec-puts-ethereum-and-solana-etf-plans-on-hold-over-compliance-worries","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=29915","title":{"rendered":"SEC Puts Ethereum and Solana ETF Plans on Hold Over Compliance Worries"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">The U.S. Securities and Exchange Commission is once again putting the brakes on new crypto ETF proposals. This time, it\u2019s calling out two funds tied to Ethereum and Solana ETFs that were set to offer investors access to staking rewards. The products come from REX Shares and Osprey Funds, and while the ideas sound innovative on paper, the SEC isn\u2019t convinced they\u2019re playing by the rules.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The Core Problem: Are These Funds Even Investment Companies?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">At the heart of the issue is whether these funds meet the legal definition of an investment company under U.S. law. The SEC has a strict view <\/span><span data-preserver-spaces=\"true\">on<\/span><span data-preserver-spaces=\"true\"> what qualifies. It wants to know if these funds actually invest in securities as their main activity. If not, they can\u2019t use the usual registration process that most mutual funds or ETFs follow.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The SEC has expressed concerns that Ethereum and Solana ETFs offering staking exposure may not qualify as ETFs under the Investment Company Act, highlighting regulatory uncertainty around crypto staking and the classification of crypto assets as securities. Read more:\u2026 <a href=\"https:\/\/t.co\/WxlRLLYMA9\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/WxlRLLYMA9<\/a><\/p>\n<p>\u2014 etf.com (@etfcom) <a href=\"https:\/\/twitter.com\/etfcom\/status\/1929644139097841693?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">June 2, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">The regulator is also <\/span><span data-preserver-spaces=\"true\">worried<\/span><span data-preserver-spaces=\"true\"> that the language used in the filings <\/span><span data-preserver-spaces=\"true\">might<\/span><span data-preserver-spaces=\"true\"> give investors <\/span><span data-preserver-spaces=\"true\">the wrong idea<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> If the funds don\u2019t technically meet the criteria to be considered investment companies, the SEC doesn\u2019t want them acting like they do.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Cayman Islands and Creative Structuring<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Another thing raising eyebrows is <\/span><span data-preserver-spaces=\"true\">how these funds are structured<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">Instead of following a straightforward model, they <\/span><span data-preserver-spaces=\"true\">use<\/span><span data-preserver-spaces=\"true\"> layers of corporate entities, including <\/span><span data-preserver-spaces=\"true\">C-corporations<\/span><span data-preserver-spaces=\"true\"> and offshore subsidiaries in <\/span><span data-preserver-spaces=\"true\">places like<\/span><span data-preserver-spaces=\"true\"> the Cayman Islands.<\/span><span data-preserver-spaces=\"true\"> That\u2019s not unheard of in the finance world, but it does complicate things.<\/span><\/p>\n<p><strong><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_683eae18f01a7\" data-coin-id=\"eth-ethereum\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n                <img id=\"crypto_chart_683eae18f01a7-chart__info-icon-img\">\n            <\/div>\n<div class=\"chart__info-name\" id=\"crypto_chart_683eae18f01a7-chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_683eae18f01a7-chart__info-symbol\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_683eae18f01a7-chart__info-price\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_683eae18f01a7-chart__info-marketcap\">&#8211;<\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\" id=\"crypto_chart_683eae18f01a7-btn-24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\" id=\"crypto_chart_683eae18f01a7-btn-7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\" id=\"crypto_chart_683eae18f01a7-btn-30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\" id=\"crypto_chart_683eae18f01a7-btn-1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_683eae18f01a7-btn-all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\" id=\"crypto_chart_683eae18f01a7-btn-log\">Log<\/button>\n            <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n        <canvas class=\"chart__canvas\" id=\"crypto_chart_683eae18f01a7-cryptoChart\"><\/canvas>\n    <\/div>\n<\/div>\n<p><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">The SEC <\/span><span data-preserver-spaces=\"true\">says<\/span><span data-preserver-spaces=\"true\"> these setups <\/span><span data-preserver-spaces=\"true\">might<\/span><span data-preserver-spaces=\"true\"> not comply with Rule 6c-11, which governs how ETFs can be listed and traded in the U.S. If they <\/span><span data-preserver-spaces=\"true\">don\u2019t check<\/span><span data-preserver-spaces=\"true\"> all the <\/span><span data-preserver-spaces=\"true\">right boxes<\/span><span data-preserver-spaces=\"true\">, the agency can delay or block their launch.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\"><strong style=\"font-size: 16px\">DISCOVER:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/crypto-presales\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">The 12+ Hottest Crypto Presales to Buy Right Now<\/a><\/strong><\/span><\/h2>\n<h2><span data-preserver-spaces=\"true\">The Staking Factor<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">A big selling point of these funds is that they promise exposure to staking rewards. That\u2019s when crypto holders lock up their assets to help run blockchain networks and, in return, earn extra tokens. <\/span><span data-preserver-spaces=\"true\">Staking has become a <\/span><span data-preserver-spaces=\"true\">key part<\/span><span data-preserver-spaces=\"true\"> of how networks like Ethereum and Solana <\/span><span data-preserver-spaces=\"true\">function since<\/span><span data-preserver-spaces=\"true\"> both now <\/span><span data-preserver-spaces=\"true\">use<\/span><span data-preserver-spaces=\"true\"> proof-of-stake models.<\/span><\/p>\n<p><strong><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_683eae18f06af\" data-coin-id=\"sol-solana\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n                <img id=\"crypto_chart_683eae18f06af-chart__info-icon-img\">\n            <\/div>\n<div class=\"chart__info-name\" id=\"crypto_chart_683eae18f06af-chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_683eae18f06af-chart__info-symbol\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_683eae18f06af-chart__info-price\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_683eae18f06af-chart__info-marketcap\">&#8211;<\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\" id=\"crypto_chart_683eae18f06af-btn-24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\" id=\"crypto_chart_683eae18f06af-btn-7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\" id=\"crypto_chart_683eae18f06af-btn-30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\" id=\"crypto_chart_683eae18f06af-btn-1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_683eae18f06af-btn-all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\" id=\"crypto_chart_683eae18f06af-btn-log\">Log<\/button>\n            <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n        <canvas class=\"chart__canvas\" id=\"crypto_chart_683eae18f06af-cryptoChart\"><\/canvas>\n    <\/div>\n<\/div>\n<p><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">The SEC hasn\u2019t banned staking, but it\u2019s been slow to approve products that rely on it. The agency has warned about the risks, like the lack of clear protections for investors and the possibility of returns being misunderstood. It\u2019s also unclear how staking fits into the legal definitions used in traditional finance.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">What Happens Next?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The ETFs technically became effective on May 30, but that doesn\u2019t mean they\u2019re ready to launch. So far, they haven\u2019t been listed on any exchanges, and both REX and Osprey have said they won\u2019t move forward until everything is cleared up. The SEC has hinted that it may take further steps if the concerns aren\u2019t resolved.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For now, both companies are <\/span><span data-preserver-spaces=\"true\">trying to work<\/span><span data-preserver-spaces=\"true\"> with regulators to <\/span><span data-preserver-spaces=\"true\">sort it out<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Whether they succeed could shape the future for other staking-based crypto funds.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025<\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">A Bigger Test for Crypto ETFs<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">This is more than just a one-off dispute. <\/span><span data-preserver-spaces=\"true\">The SEC\u2019s reaction here <\/span><span data-preserver-spaces=\"true\">shows how tricky it still is to bring<\/span><span data-preserver-spaces=\"true\"> crypto into the ETF world, <\/span><span data-preserver-spaces=\"true\">especially<\/span><span data-preserver-spaces=\"true\"> when <\/span><span data-preserver-spaces=\"true\">you start adding<\/span><span data-preserver-spaces=\"true\"> newer features like staking.<\/span><span data-preserver-spaces=\"true\"> While spot Bitcoin ETFs made it through the regulatory gauntlet earlier this year, anything more complex still faces an uphill climb.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">How the SEC handles this case will likely set the tone for Ethereum, Solana, and any other staking-linked ETFs that come next. The crypto industry is watching closely. If approved, Ethereum and Solana staking ETFs could offer a new gateway for institutions to tap into proof-of-stake networks legally.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener nofollow\"><span data-preserver-spaces=\"true\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<ul class=\"nnbtc-key-takeaways__list\">\n        <\/ul>\n<p><\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The SEC is delaying Ethereum and Solana staking ETF plans from REX and Osprey due to legal and structural concerns.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        At issue is whether these funds meet the definition of a U.S. investment company under existing financial laws.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The SEC flagged concerns over complex fund structures involving offshore entities like Cayman-based subsidiaries.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Staking rewards are a core feature of these ETFs, but the SEC remains cautious about approving such mechanisms for public products.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        These delays highlight how crypto ETFs with newer features still face steep regulatory hurdles in the U.S.    <\/li>\n<p>    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\"><br \/>\n    <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">    <\/span><\/p>\n<\/div>\n<p>    <\/span><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/legal\/sec-puts-ethereum-and-solana-etf-plans-on-hold-over-compliance-worries\/\">SEC Puts Ethereum and Solana ETF Plans on Hold Over Compliance Worries<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission is once again putting the brakes on new crypto ETF proposals. This time, it\u2019s calling out two funds tied to Ethereum and Solana ETFs that were set to offer investors access to staking rewards. The products come from REX Shares and Osprey Funds, and while the ideas sound innovative [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-29915","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29915"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29915\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}