SEC Flags Compliance Concerns Over Proposed Ethereum and Solana ETFs

The US Securities and Exchange Commission warned that the two proposed fund that is traded on the stock market related to Ethereum and Solan cannot fulfill the legal definition of an investment company, which causes concern about their registration and potential eligibility for exchanges.

In a letter For consulting ETF capabilities Trust, Secus said that staff had unresolved questions about whether Rex-Oprey ETH and Sol ETF, which include components for investment, are structured to invest in value papers primarily as required in accordance with the 1940 investment companies.

ETF Appiepts Trust is an open investment company based in Delaware, which serves as a legal vehicle or issuer to launch multiple agents with multiple exchange, including those managed by Rex.

Sponsors Rex shares and Osprey funds have endured a Registration Statement For the proposed Ethereum and Solana Etf -Oovi on January 21st.

Submissions also included several other critalized products, including the first proposed ETFs for Trump Meme Coin, Bonk and Dogecoin, as well as additional funds accompanied by Bitcoin and XRP.

Although the registration statement for Rex-Oprey Ethereum and Solana Etfs entered into force on May 30, the funds were not launched and not listed on any exchange.

“As we have repeatedly communicated to you, the Commission staff still has unresolved questions whether the funds, if structured and act as proposed, be able to fulfill the definition of a” investment company “under the Investment Society Act,” SEC staff wrote.

The Fund qualifies as an investment company under US law if it is primarily engaged in investment or trade of securities or if investment value of compensation More than 40% its total assets.

The agency also said that ETFs may have been incorrectly filed in accordance with the N-1A form, reserved for funds qualified as investment companies under Federal Law, and may also be less than 6CC-11 rules, which allows ETFS to work and list without seeking individual exemption.

“To the extent that these concerns remain unresolved, the Commission’s staff will consider the appropriate following steps to ensure the respect of the Federal Securities Laws,” SEC staff wrote.

The letter follows staff leadership Issued on Thursday, explaining that certain types of cryptocurrencies, such as independent and detention, do not include an offer or sale of securities under Federal Law.

The guidelines, which are not legally binding, marked a shift from earlier implementation views and attracted disagreement from the commissioner Caroline Crenshaw, who said that the move “continued to sow uncertainty about what the law is.”

SEC did not immediately respond to the comment request.