The SEC’s move to halt proposed crypto ETFs that would allow staking likely won’t help or hurt other issuers’ efforts to unlock that feature for their own funds, industry watchers argue.

Registration statements for the Rex-Osprey ETH Staking ETF and the Rex-Osprey SOL Staking ETF went effective on May 30 “without resolution of staff comments,” the SEC wrote in a letter that day. 

The funds were structured as C-corporations, Bloomberg Intelligence analyst James Seyffart pointed out in a series of X posts. This “unique structure” would allow the funds to bypass the 19b-4 process, which requires self-regulatory organizations to propose rule changes to the… Read more on Blockworks