The United States Securities and Exchange Commission (SEC) responded to the effective registration amendment for Solana (Sol) and ether (Eth) Funds exchanged by the exchange (ETF) from ETF provider Rex Financial and Asset Management Firm Osprey Funds, worried that both investment vehicles are not eligible as ETFs because of their unique structures.
According to a recent report from BloombergRegulators say C-Corp The business structure used in funds. This regulation is legal that assigns the types of corporate structures suitable for funds exchanged by the exchange. The SEC wrote on a May 30 Letter:
“As we talked to you on many occasions, the commission staff continued to not solve questions about whether funds, if structured and operated as suggested, could meet the ‘investment company’ meaning under the investment company law.”
“Disclosure in the registration statement about the status of funds as investment companies may be potentially misleading,” the letter continued.
Despite the minor setback, the analysts are optimistic that the ETF providers and the SEC will reach an agreement. “Rex lawyers said they could do this,” Bloomberg ETF’s analyst Eric Balchunas wrote on a May 31 x Post. “Binding the envelope is pushing for an effort to get the first market,” the analyst continued.
Crypto investors and entrepreneurs continue to monitor the Approval of Altcoin and Staking ETF In the United States, as the list of investment vehicles is expected to bring fresh liquidity from the traditional crypto financial market.
Related: The crypto industry urges the SEC to clarify the staking stance
SEC has delayed deciding on ETF in spite of recent guidance
In spite of the SEC release recently Guide That is Crypto staking does not violate security laws and did not fall under Purview of security transactions, the SEC continues delay the decision in staks and altcoin etf.
https://www.youtube.com/watch?v=2SONEEG6WC8
According to Bloomberg ETF analyst James Seyffart, the delays are expected and out of the standard.
“Almost all of these filings have a final due date in October,” Seyffart writeAdding that it is not uncommon for ETF applications to be approved in advance.
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