The US SEC has questioned the compliance of Ethereum and Solana ETFs.

[The US SEC questions the compliance of Ethereum and Solana ETFs] The day after the Securities and Exchange Commission (SEC) stated that most crypto assets staking is not within the scope of securities laws, it raised concerns about two proposed ETFs related to Ethereum and Solana. Last Friday, the SEC warned that the two proposed ETFs linked to Ethereum and Solana may not meet the legal definition of an investment company, raising concerns about their sign up and potential listing eligibility. In a letter to the legal counsel of ETF Opportunities Trust, the SEC stated that staff still has unresolved questions regarding whether REX-Osprey ETH and SOL ETF (which includes staking components) primarily invests in securities as required by the Investment Company Act of 1940. ETF Opportunities Trust is an open-end investment company headquartered in Delaware, serving as the legal vehicle for launching multiple exchange-traded funds, including those managed by REX. According to U.S. law, if a fund primarily engages in the investment or trading of securities, or if more than 40% of its total assets are invested in securities, then the fund is classified as an investment company.