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- The SEC raised concerns about whether REX-OSPREY ETH and SOL ETF were qualified under the 1940 investment company law.
- Despite the ongoing discussion, the registration of ETFS has been fermented without solving the problem on May 30.
- The letter came out one day after the SEC employee issued a guideline in the securities rules that exempted certain staying practices.
On Friday, the US Securities and Exchange Commission warned that two proposed exchange transaction funds related to Ether Leeum and Solana did not meet the legal definition of the investment company, raising concerns about registration and exchange.
A letter For advice on ETF Opportunities Trust, the SEC said that the REX-OSREY ETH and Sol ETF, which included the starking components, did not resolve the resolved questions about whether to invest mainly in securities in accordance with the Investment Company Act in 1940.
ETF Opportunility Trust is a Delaware -based open -end investment company that works as a legal vehicle or publisher for launching multiple exchange transaction funds managed by REX.
Sponsor Rex shares and OSPREY funds are A Registration For Ether Leeum and Solana ETF proposed on January 21.
The submission also included several different encryption connection products, including the first proposed ETF and additional funds for tracking the first proposed ETF and Bitcoin and XRP for Trump Meme Coin, Bonk and Dogecoin.
Registration statements of REX-OSTREY ETHEERIM and Solana ETFS were fermented on May 30, but the funds were not released and were not listed on exchange.
The SEC employee said, “As we have communicated with you several times several times, the committee staff does not continue to solve the question of whether the funds can meet the definition of the investment company under the investment company law.
Funds are primarily qualified as an investment company in accordance with US law if they are involved in securities or transactions or account for more than 40% of their total assets.
The institution may also have been inappropriate for the ETF according to the Form N-1A, which may be booked as a qualified investment company under the federal law, and may not meet the conditions of the Rules 6C-11, which allows the ETF to operate and list without finding a personal exemption.
The SEC employee said, “Until these concerns were not resolved, the committee staff will consider the next step in order to comply with the Federal Securities Law.
The letter follows Staff Certain types of encryption stake, such as autonomy and custody steaking issued on Thursday, clarify that the proposal or sale of securities is not included in accordance with federal law.
The legitimate binding guidelines showed a shift in the previous execution position and raised the opposition from the Caroline Censhaw Commissioner.
The SEC did not immediately respond to the request.
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