The U.S. Securities and Exchange Commission (SEC) has raised concerns about the legal classification of proposed Ethereum (ETH) and Solana (SOL) staking exchange-traded funds (ETFs) submitted by REX Financial and Osprey Funds. Despite initial registration approval, the SEC questions whether these staking products meet the criteria to qualify as ETFs under federal securities law, citing issues related to their business structure, disclosures, and their status as investment companies. Concurrently, the SEC's Division of Corporation Finance clarified that certain types of protocol staking activities do not constitute the offer and sale of securities, indicating that native staking is not considered a security. This clarification has been welcomed by industry figures, including Coinbase's Paul Grewal. Additionally, the SEC is reviewing ETF filings related to Bitcoin, specifically seeking public feedback on proposals permitting in-kind creations and redemptions for the WisdomTree Bitcoin Fund. Meanwhile, staking services such as Marinade Finance, which offers high annual percentage yields (APY) on Solana, are preparing to launch staking ETFs, reflecting ongoing developments in the crypto ETF regulatory landscape.