The SEC's objection to proposed crypto ETFs allowing staking may not have significant implications for other issuers in the market. The Rex-Osprey ETH Staking ETF and Rex-Osprey SOL Staking ETF recently registered without addressing staff comments from the SEC. The agency expressed concerns on whether the proposed funds could qualify as 'investment companies' and suggested they delay their proposals. Analyst James Seyffart noted that the unique C-corporation structure of these funds allows them to navigate SEC processes differently. Nate Geraci from The ETF Store believes this could be issuers testing SEC boundaries, given the current pro-crypto stance within the agency. The SEC is expected to approve spot solana ETFs, including staking provisions, possibly by the end of 2025. Additionally, the commission has flagged custody and other issues that need resolution before allowing modifications to existing crypto ETFs related to staking.

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