<ul><li>SEC sent a letter to ETF Opportunities Trust raising concerns about legal risks in the structure of Staking ETFs that allow investors to earn yield by locking tokens.</li><li>REX Financial won't proceed with Staking ETFs until SEC's concerns are addressed, aiming to meet the legal definition of an investment company.</li><li>Despite the setback, analysts believe Staking ETFs are inevitable and expect more compliant approaches to succeed in the future.</li><li>SEC's warning has frozen REX Financial's mid-June launch of Staking ETFs, with regulatory action possible if issues are not resolved, as the SEC tightens its grip on ETF structures.</li></ul>

SEC Pushes Back on Crypto ETFs With Staking Rewards

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