U.S. Securities and Exchange Commission Commissioner Caroline A. Crenshaw issued a statement arguing that recent SEC and staff actions are creating conflicting signals about when crypto assets are treated as securities, highlighting the absence of Commission objection to the effectiveness of exchange-traded funds that characterize ETH and SOL as securities. The statement contrasts recent staff statements suggesting various crypto assets are not securities with the effectiveness of registration statements for the Rex-Osprey ETH + Staking ETF and the Rex-Osprey SOL + Staking ETF, which are presented as registered investment companies under the Investment Company Act of 1940. It also points to an apparent inconsistency with the exchange-traded product framework, where certain products have been approved to list and trade on the basis that underlying assets such as ETH are generally not securities, and notes that the Securities Act of 1933 and the 1940 Act generally treat security-status questions consistently. Crenshaw further cites SEC staff correspondence indicating the registrant allowed the funds’ registration statement to become effective despite unresolved Division of Investment Management comments, including concerns that the funds may not meet the definition of an investment company and that related disclosure may be potentially misleading.
U.S. Securities & Exchange Commission 2025-05-31
U.S. Securities and Exchange Commission Commissioner Crenshaw warns new ETH and SOL staking ETF registrations are deepening confusion over crypto asset security status
SEC Commissioner Caroline A. Crenshaw criticized recent SEC actions for conflicting signals on classifying crypto assets as securities. She highlighted inconsistencies between staff statements and the approval of ETFs for ETH and SOL, treated as securities under the Investment Company Act of 1940. Crenshaw also noted unresolved concerns from the Division of Investment Management regarding the funds' registration statements and potential misleading disclosures.