The SEC is “very interested” in crypto staking and offers potential guidance

The US SEC is focused on crypto staking and may issue new Guidance for Practice, Fox business journalist Eleanor Terrett reported Thursday, citing sources that he recently communicated with securities regulators.

“The agency says, “It’s very, very interesting.” Ask the industry Terret shared with X about notes detailing the different types of staking and their benefits.

Last week, the SEC’s Crypto Task Force meets representatives from Jito Labs and Multicoin Capital Management to discuss the capture Staking Features of Crypto Exchange-Traded Products (ETPS).

During their meeting, these companies presented two models to implement Staking With Crypto etps. Service model enables ETP Stakes Native assets through validator service providers while maintaining timely Red, on the other hand The LST model includes ETP that holds liquids Staking A token representing the piling version of a native asset.

The meeting also addressed previous concerns that led to the removal of Staking Features from previous ETP Applications that include The timing of redemption, the tax impact on grantor trusts, and classification of staking services as a securities transaction.

Companies are saying that preventing staking in Crypto ETPs is to “deprive investors of potential returns by harming the underlying asset by impairing productivity and thus causing them to be stolen by robbing investors of potential returns. “By preventing a significant portion of the circular supply from being made fun of, by stealing network security.”

CBOE BZX Exchange recently submitted Form 19B-4 to the SEC and proposed allowing staking activities for the 21Shares Core Ethereum ETF. If approved, this will allow the ETF to generate additional returns from its Ethereum holdings, which could increase the profits of investors.

The move marked the first such request, following the SEC approval of SPOT Ethereum ETF last year. The application was granted by the SEC on Wednesday.

Previously, 21Shares and Ark Invest tried to launch a staked Ethereum ETF, Staking Application features. Ark Invest later withdrew from the Ethereum ETF initiative, bringing 21 shares move on With 21Shares Core Ethereum ETF.