U.S. regulators are scrutinizing plans by REX Financial and Osprey Funds to launch cryptocurrency ETFs offering staking exposure.
SEC has raised concerns that the funds may not qualify as ETFs under securities laws, questioning their status as investment companies.
REX claims to address SEC's concerns before launching the funds, saying they believe in the success of allowing staking in a U.S. ETF eventually.
SEC approved bitcoin ETFs last year but remains cautious about crypto-related products, reflecting a shift in attitude under President Trump's administration.