Latest news with #REXFinancial
Yahoo
7 hours ago
- Business
- Yahoo
SEC Concerned About Crypto ETFs With Staking Exposure
The Securities and Exchange Commission (SEC) is concerned that crypto exchange-traded funds that offer exposure to staking may not qualify as ETFs after all. On Friday, the agency sent a letter to ETF Opportunities Trust regarding Ethereum and Solana funds by REX Financial and Osprey Funds with staking exposure: the REX-Osprey ETH ETF and the REX-Osprey SOL ETF. Staking allows crypto investors to earn rewards on the tokens they hold. The SEC letter said that it 'continues to have unresolved questions whether the Funds, if structured and operated as proposed, would be able to meet the definition of 'investment company' under the Investment Company Act.' Under the law, funds must meet this definition to be eligible to trade on the stock market. The financial regulator added that it is 'concerned that the Funds may have improperly filed their registration statement on Form N-1A and that disclosures in the registration statement regarding the Funds' status as investment companies may be potentially misleading.' REX Financial and Osprey Funds declined to comment to However, Bloomberg reported that Greg Collett, general counsel at REX Financial, said, 'We think we can satisfy the SEC on the investment company question, and we don't intend to launch the funds until we do that.' The funds would have been the 'first-ever staked Ether and Solana ETFs' as well as the "first-ever spot Solana" ETF, according to Eric Balchunas, senior ETF analyst at Bloomberg. The SEC's delay comes after it issued guidance on Thursday, stating that staking participants don't need to register their transactions with the agency. On Saturday, Commissioner Caroline Crenshaw issued a statement criticizing the SEC's 'confusion' on crypto asset security status. 'In the name of this clarity, we've seen staff statement after staff statement, pronouncing that all sorts of crypto assets are not securities. And yet, now we see no objection to the effectiveness of new exchange-traded funds that assert certain crypto assets—ETH and SOL—actually are securities. Does this Commission, in fact, believe that ETH and SOL are securities?' Crenshaw wrote. 'How is it that these crypto assets are supposedly not securities when it comes to registration requirements but conveniently are securities when a registrant sees an opportunity to sell a new product?'Permalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Post
21 hours ago
- Business
- Arabian Post
SEC Raises Concerns Over Ethereum and Solana Staking ETFs
The U.S. Securities and Exchange Commission has expressed reservations regarding two proposed exchange-traded funds that seek to provide investors with exposure to staked Ethereum and Solana . The ETFs, introduced by REX Financial and Osprey Funds, are under scrutiny for potentially not meeting the legal definition of investment companies as stipulated by the Investment Company Act of 1940. The SEC's concerns center on the structure of these ETFs, which aim to offer returns derived from staking rewards—a process where cryptocurrency holders participate in network operations in exchange for additional tokens. The regulatory body has questioned whether the funds are primarily structured to invest in securities, a requirement under federal law. Despite the initial registration of these funds becoming effective on May 30, the SEC has indicated that this does not equate to an endorsement or approval of the funds' compliance with legal standards. The agency has highlighted that the disclosures in the registration statements may be potentially misleading regarding the funds' status as investment companies. ADVERTISEMENT REX Financial has responded by stating that it will not proceed with the launch of these ETFs until the compliance issues raised by the SEC are resolved. Greg Collett, general counsel at REX, acknowledged the SEC's concerns and emphasized the company's commitment to addressing them. The introduction of staking-based ETFs represents a novel approach in the financial markets, aiming to bridge traditional investment vehicles with the decentralized finance sector. However, the SEC's apprehension underscores the complexities and regulatory challenges associated with integrating such innovative financial products into the existing legal framework.
Straits Times
2 days ago
- Business
- Straits Times
SEC flags concerns on crypto ETFs offering staking rewards
US regulators are now raising concern the vehicles may not legally qualify as ETFs at all under federal securities law. PHOTO: REUTERS WASHINGTON – A potentially watershed effort to launch US crypto exchange-traded funds that offer staking rewards is throwing up regulatory doubts, even after the funds said they received initial SEC registration approval. Issuers REX Financial and Osprey Funds are targeting to launch exchange traded funds, or ETFs, tracking Ethereum and Solana that offer staking exposure, which allows investors to earn rewards by pledging tokens to help operate the blockchain. US regulators are now raising concern the vehicles may not legally qualify as ETFs at all under federal securities law. In a letter late on May 30 sent to ETF Opportunities Trust – the legal entity that issues various ETFs including those managed by firms like REX – SEC staff said the two ETFs may fail to meet the legal definition of an investment company, a designation needed for the funds to list in the stock market. The SEC said it was concerned the funds 'improperly filed their registration statement' and that 'disclosures in the registration statement regarding the funds' status as investment companies may be potentially misleading.' 'We think we can satisfy the SEC on the investment company question, and we don't intend to launch the funds until we do that,' said Greg Collett, general counsel at REX Financial. The SEC declined to comment beyond the letter. SEC Commissioner Caroline Crenshaw, the commission's lone Democrat and frequent critic of its new view on crypto in President Donald Trump's administration, said the situation was emblematic of the agency's recent piecemeal approach to crypto regulation. During his reelection campaign, Trump touted his own digital collectibles, gathered campaign donations from crypto fans and said he would make the US the 'crypto capital of the planet.' Since February, following the launch of a special advisory group on cryptocurrency, SEC staff have issued statements saying crypto assets such as memecoins and stablecoins aren't securities, meaning they aren't under the SEC's jurisdiction. Yet firms see opportunities to register with the SEC to launch new products, Ms Crenshaw said in a statement Saturday. 'How is it that these crypto assets are supposedly not securities when it comes to registration requirements, but conveniently are securities when a registrant sees an opportunity to sell a new product?,' she said. 'If you're confused, join the club.' It's the second time in recent months that the SEC has publicly expressed doubt on a listed fund investing in alternative asset classes. In March, it rebuked an ETF by State Street Corp. and Apollo Global Management – the world's first to invest in private credit – hours after the fund listed. 'Even if the SEC doesn't allow this structure to list, we still believe the more straightforward attempts to allow staking in a US ETF will ultimately be successful,' Bloomberg Intelligence ETF analyst James Seyffart said. 'It's a matter of when, not if. But the SEC doesn't seem to be a fan of the way Rex tried to push these listings through.' REX said it received a so-called effective registration for the two ETFs earlier Friday, meaning they could be listed anytime. REX founder Greg King said at the time the company was planning the launch by mid-June for both. 'To the extent that these concerns remain unresolved, the Commission staff will consider the appropriate next steps to ensure compliance with the federal securities laws,' the SEC said on May 30. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
2 days ago
- Business
- Yahoo
SEC Flags Concerns on Crypto ETFs Offering Staking Rewards
(Bloomberg) -- A potentially watershed effort to launch US crypto exchange-traded funds that offer staking rewards is throwing up regulatory doubts, even after the funds said they received initial SEC registration approval. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NYC Congestion Toll Brings In $216 Million in First Four Months The Economic Benefits of Paying Workers to Move Where the Wild Children's Museums Are Issuers REX Financial and Osprey Funds are targeting to launch ETFs tracking Ethereum and Solana that offer staking exposure, which allows investors to earn rewards by pledging tokens to help operate the blockchain. US regulators are now raising concern the vehicles may not legally qualify as ETFs at all under federal securities law. In a letter late Friday sent to ETF Opportunities Trust — the legal entity that issues various ETFs including those managed by firms like REX — Securities and Exchange Commission staff said the two ETFs may fail to meet the legal definition of an investment company, a designation needed for the funds to list in the stock market. The SEC said it was concerned the funds 'improperly filed their registration statement' and that 'disclosures in the registration statement regarding the funds' status as investment companies may be potentially misleading.' 'We think we can satisfy the SEC on the investment company question, and we don't intend to launch the funds until we do that,' said Greg Collett, general counsel at REX Financial. The SEC declined to comment beyond the letter. SEC Commissioner Caroline Crenshaw, the commission's lone Democrat and frequent critic of its new view on crypto in President Donald Trump's administration, said the situation was emblematic of the agency's recent piecemeal approach to crypto regulation. During his reelection campaign, Trump touted his own digital collectibles, gathered campaign donations from crypto fans and said he would make the US the 'crypto capital of the planet.' Since February, following the launch of a special advisory group on cryptocurrency, SEC staff have issued statements saying crypto assets such as memecoins and stablecoins aren't securities, meaning they aren't under the SEC's jurisdiction. Yet firms see opportunities to register with the SEC to launch new products, Crenshaw said in a statement Saturday. 'How is it that these crypto assets are supposedly not securities when it comes to registration requirements, but conveniently are securities when a registrant sees an opportunity to sell a new product?,' she said. 'If you're confused, join the club.' It's the second time in recent months that the SEC has publicly expressed doubt on a listed fund investing in alternative asset classes. In March, it rebuked an ETF by State Street Corp. and Apollo Global Management — the world's first to invest in private credit — hours after the fund listed. 'Even if the SEC doesn't allow this structure to list, we still believe the more straightforward attempts to allow staking in a US ETF will ultimately be successful,' Bloomberg Intelligence ETF analyst James Seyffart said. 'It's a matter of when, not if. But the SEC doesn't seem to be a fan of the way Rex tried to push these listings through.' REX said it received a so-called effective registration for the two ETFs earlier Friday, meaning they could be listed anytime. REX founder Greg King said at the time the company was planning the launch by mid-June for both. 'To the extent that these concerns remain unresolved, the Commission staff will consider the appropriate next steps to ensure compliance with the federal securities laws,' the SEC said late Friday. (Updates with comment by Democratic member of SEC starting in eighth paragraph.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce AI Is Helping Executives Tackle the Dreaded Post-Vacation Inbox How Coach Handbags Became a Gen Z Status Symbol Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
US Regulators Say Two Crypto Vehicles May Not Qualify as ETFs
A potentially watershed effort to launch US crypto exchange-traded funds that offer staking rewards is throwing up regulatory doubts, even after the funds said they received initial SEC registration approval. Issuers REX Financial and Osprey Funds are targeting to launch ETFs tracking Ethereum and Solana that offer staking exposure, which allows investors to earn rewards by pledging tokens to help operate the blockchain.
