SEC opposes new crypto funds amid legal uncertainty — Bloomberg

The US Securities and Exchange Commission (SEC) is facing the need to regulate new cryptocurrency exchange-traded funds (ETFs) that offer investors earnings through staking, as reported by Bloomberg. This was prompted by proposals from REX Financial and Osprey Funds, which plan to generate profits using Ethereum and Solana.

The problem emerged due to the uncertainty surrounding the legal status of cryptocurrencies. According to the law, investment companies must primarily invest in securities. However, the distinction between securities and other assets in the crypto market is unclear.

The situation is further complicated by the regulator's contradictory stance. Despite the SEC's recent statement that securities legislation does not apply to staking, commission staff have expressed doubts about the new funds' compliance with established requirements.

Guided by the Howey Test, a 1946 precedent, the SEC must determine whether the tokens in question are securities. Resolving this issue will significantly impact the future development of the crypto investment market in the US.