Staking should potentially be added to the Crypto Exchange Trade Funds (ETF), a bipartisan group of U.S. Senators who argued in a letter to the Securities and Exchange Commission (SEC) on Thursday.
The issuer of the Crypto ETF originally planned to include staking features in fund offerings, but the SEC has been balking the idea under past leadership. The agency, run by Speaker Gary Gensler until the arrival of President Donald Trump’s administration last month, previously sought enforcement measures against companies such as Kraken, claiming staking was equivalent to providing unregistered securities.
The Senator’s letter is supported by Cynthia Ramis, Republican Chairman of the Senate’s subcommittee focused on digital assets, but calls for a rethink of practices that involve locking digital tokens to support blockchain operations in return for compensation. Advocates argue that protocol staking is key to the security of ecosystems such as Ethereum.
“The SEC encourages investors to consider the potential benefits of allowing them to staking protocols based on specific digital assets (replacement-sold products),” argued, Acting SEC Chairman Mark Weda.
Other Republicans joined Ramis in correspondence, as did the two Democrats. Her regular crypto partners, the Kirstengilli brand in New York, and Ron Wyden in Oregon.
Read more: Staking on Ethereum ETFS may be a problem, but
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