Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 85

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 85
---
 regulatory risks or potential enforcement actions. For example, there is a risk that the staking arrangements could constitute an “investment contract” under the federal securities laws, such that it is a security, and thus needs to be registered or eligible for an exemption from registration. In May 2025, staff at the SEC’s Division of Corporation Finance issued a statement (the “SEC Staking Statement”) expressing the view that certain staking activities do not involve the offer and sale of securities within the meaning of the federal securities laws, and we believe the staking arrangements satisfy the criteria in this guidance. However, the SEC Staking Statement is not a rule, regulation, guidance, or statement of the Commission, and has no legal force or effect. There is accordingly a risk that a court could disagree with the views expressed in the SEC Staking Statement. In that case, or if SOL were deemed a security, there would also be a risk that a Staking Provider could be deemed to be acting as a broker-dealer, on the basis that the Staking Provider is receiving a commission for effecting the staking transactions and receipt of Staking Consideration.

Risk Factors Related to Potential Conflicts of Interest

Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust. The Sponsor and its affiliates have no fiduciary duties to the Trust and its shareholders other than as provided in the Trust Agreement, which may permit them to favor their own interests to the detriment of the Trust and its shareholders.

The Sponsor will manage the affairs of the Trust. Conflicts of interest may arise among the Sponsor and its affiliates, on the one hand, and the Trust and its shareholders, on the other hand. As a result of these conflicts, the Sponsor may favor its own interests and the interests of its affiliates over the Trust and its shareholders. These potential conflicts include, among others, the following:

| ● | The                                                                                                                                         
 Sponsor has no fiduciary duties to, and is allowed to take into account the interests of parties other than, the Trust and its shareholders 
 in resolving conflicts of interest, provided the Sponsor does not act in bad faith;                                                         |
| ● | The                                                                                                                                         
 Trust has agreed to indemnify the Sponsor and its affiliates pursuant to the Trust Agreement;                                               |
| ● | The                                                                                                                                         
 Sponsor is responsible for allocating its own limited resources among different clients and potential future business ventures, to          
 each of which it owes fiduciary duties;                                                                                                     |
| ● | The                                                                                                                                         
 Sponsor and its staff also service affiliates of