BlackRock and SEC discuss staking and options in crypto ETFs

• BlackRock and SEC discuss staking in crypto ETFs
• Discussion includes limits on options on Ethereum ETFs
• Tokenization to be the topic of the next SEC roundtable

Representatives from BlackRock, the world’s largest asset manager, met with members of the U.S. Securities and Exchange Commission’s (SEC) cryptocurrency task force on Friday to discuss regulations applicable to cryptocurrency exchange-traded funds (ETFs). The meeting was recorded in an official memorandum released by the authorities.

During the meeting, regulatory approaches related to including features such as staking in spot Ethereum ETFs were discussed. Robert Mitchnick, head of digital assets at BlackRock, participated in the discussions and previously noted that Ethereum staking could represent a gradual advancement for the industry, although it faces technical and regulatory challenges.

The document also details that BlackRock presented considerations on how to enable exchange-traded products (ETPs) with staking capabilities. The agenda included defining criteria for positions and exercise limits related to cryptocurrency ETF options, considering aspects such as liquidity and risk management.

The SEC recently authorized trading of options tied to spot Ethereum ETFs, including those from BlackRock itself, as well as Grayscale and Bitwise. This move signals a possible shift in the agency’s stance on regulating financial products linked to the crypto market.

Another point raised by BlackRock was the need to establish clearer and more standardized parameters for the approval of ETFs with exposure to cryptocurrencies. The initiative aims to provide greater predictability for issuers and legal certainty for institutional investors.

The SEC's cryptocurrency task force has been meeting with several companies and entities in the sector in recent months. The agency's current leadership, under Paul Atkins — appointed by Donald Trump — has signaled a greater openness to the crypto market. Atkins replaced Gary Gensler, who had adopted a more restrictive stance, marked by lawsuits against companies in the sector.

Commissioner Hester Peirce, known for her pro-industry stance, is leading the task force discussions. A new roundtable discussion on the tokenization of financial assets is scheduled for next Monday.