Ethereum ETF Staking Likely Soon as US SEC Acknowledges Cboe Filing
The post Ethereum ETF Staking Likely Soon as US SEC Acknowledges Cboe Filing appeared on BitcoinEthereumNews.com.
The U.S. Securities and Exchange Commission (SEC) has acknowledged the 19b-4 filing by the Cboe exchange while seeking the approval of staking features in the 21Shares Core Ethereum ETF (CETH). This could be a welcome development as crypto ETFs were barred from staking under the SEC chairmanship of Gary Gensler, noting that it violated securities laws. Will the US SEC Approve Ethereum ETF Staking? Although, the US CFTC has acknowledged Ethereum as a “commodity”, the US SEC has yet to clearly state its position on ETH, whether it’s a security or a commodity. During the approval of the spot Ethereum ETF last year, the SEC had its own contentions over approving the staking feature. One of the major concerns the securities agency had was that the service provider i.e. crypto exchange would operate and promote staking as “an investment product” while guaranteeing a certain rate of return. The agency believed that this operating method was unclear and that the investor protection measures were insufficient. The question here is what has changed now with the SEC, which is that 21Shares is applying for a staking facility on its Ether ETF. Will the Cboe application manager circumvent SEC regulations? Here’s How CETH Plans to Offer Staking Facility The 21Shares Core Ethereum ETF (CETH) is staked by entrusting it to a custodian i.e. staking provider and no ETH will be moved from the wallet during the staking period. Moreover, CETH affiliates and sponsors won’t be able to become staking affiliates. CryptoQuant analyst Mignolet has emphasized the importance of enhancing transparency in exchange staking services to address concerns surrounding fund safety and operational clarity. “If we choose an unrelated provider to increase transparency and avoid moving funds from the custodian’s wallet, we can eliminate unnecessary risks like hacking or the illegal use of customer…
Filed under: News - @ February 20, 2025 12:23 pm