SEC’s staking ETF pushback shows regulatory uncertainty, says Ripple-backed custodian

The U.S. Securities and Exchange Commission has expressed doubts over classified exchange-traded funds utilizing staking mechanisms for Solana (SOL) and Ether (ETH). Proposals from REX Financial and Osprey Funds face criticism for potentially not adhering to ETF requirements.

Manthan Davé from Palisade noted that the SEC’s hesitation reflects deeper discomfort regarding evolving digital asset markets. This contradiction in SEC’s stance threatens crypto innovation due to regulatory opacity.

Asset managers increasingly seek regulatory clarity as they plan new digital asset products. Without clear frameworks, the U.S. Risks losing its position in digital finance innovation, pushing developments offshore.