The post SEC crypto task force weighs staking in ETFs after meeting with Jito Labs, Multicoin appeared on BitcoinEthereumNews.com.

The U.S. Securities and Exchange Commission (SEC) Crypto Task Force has begun considering whether staking should be allowed in crypto exchange-traded products (ETPs) after meeting with Jito Labs and Multicoin Capital on February 5, 2025. According to the meeting notes that were released today, the meeting focused on whether staking can be legally integrated into crypto ETFs and how it could function within regulatory frameworks. The SEC, which previously forced issuers to remove staking from Ethereum ETF applications, appears to be revisiting the issue following growing interest from firms looking to offer Solana-based ETFs and other staking-enabled products. “The attendees expect to address two main topics during the meeting: (i) the ability to include staking as a feature in exchange traded products (“ETPs”) and (ii) potential models for staking in certain cryptoasset ETPs,” said the notes. Staking is a core mechanism in PoS blockchains like Ethereum and Solana, where validators lock up tokens to secure the network and earn rewards in return. The proposed ETF structures would enable fund investors to benefit from staking yields while maintaining ETF liquidity and compliance with SEC rules. Jito Labs, Multicoin propose two staking models for ETFs Jito Labs CEO Lucas Bruder, Chief Legal Officer Rebecca Rettig, Multicoin Managing Partner Kyle Samani, and General Counsel Greg Xethalis laid out two potential approaches to incorporating staking into crypto ETFs. The first option is staking a portion of the fund’s assets through third-party validators, allowing ETFs to earn rewards while making sure there is enough liquidity for redemptions. The second model introduces liquid staking tokens (LSTs), where ETFs would hold staked versions of assets—such as JitoSOL for Solana—instead of the native tokens themselves. The SEC has a history of skepticism toward staking in ETFs. When asset managers initially applied for Ethereum ETFs, some included staking as…

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Filed under: News - @ February 15, 2025 5:17 am