On June 1, the U.S. Securities and Exchange Commission (SEC) raised questions about ETF funds linked to Ethereum and Solana issued by REX Shares and Osprey Funds. According to the SEC, these funds may not fully meet the standards defining investment funds and ETF funds under the Federal Securities Act. The agency is concerned that the registration statements may contain misleading or inaccurate information, causing misunderstandings about the legal nature of the introduced cryptocurrency funds.
The SEC emphasized that the registration files of these funds may have been "incorrectly submitted," especially in the part identifying the funds as investment companies. This creates legal risks and affects investor confidence amid the characteristic volatility of the cryptocurrency market. This is the latest sign of tighter control over blockchain and Token-related financial products to ensure transparency and protect investors.
Greg Collett, the legal representative of REX Financial, stated that they believe they can resolve issues related to investment company status as required by the SEC. He also confirmed that the fund launch will be postponed until all legal compliance requirements are fully met. This demonstrates caution in issuing new financial products based on cryptocurrencies to minimize legal risks and ensure strict compliance with U.S. regulations.
