SEC, Stimulus, and Politics Shape Crypto ETF Outlook

The U.S. Securities and Exchange Commission (SEC) has raised legal compliance concerns about REX Shares' and Osprey Funds' proposed Ethereum and Solana staking ETFs, questioning their alignment with the Investment Company Act of 1940 and potentially delaying their launch. The SEC clarified that most crypto staking activities do not constitute securities offerings, removing a significant regulatory barrier for proof-of-stake networks and future staking-based ETFs. Financial and crypto markets experienced increased volatility and optimism after the White House announced a $2 trillion stimulus package targeting technology and infrastructure. New bipartisan legislative initiatives, such as the GENIUS Act for stablecoins and the CLARITY Act for digital assets, aim to provide clearer regulatory frameworks for the crypto industry. Political factors, including key Senate races and the Trump administration's pro-crypto stance, are influencing investor sentiment and shaping the regulatory outlook. These developments highlight the evolving and interconnected landscape of U.S. crypto policy, regulation, and market activity.