SEC Deepens Interest in Cryptocurrency Staking in the US

• SEC probes industry on staking
• Possible new staking guidelines
• Discussion on staking in ETFs and ETPs

With the election of Donald Trump, the United States is experiencing an era of expectations for changes in policies governing digital assets. A recent tweet indicated a growing interest from the Securities and Exchange Commission (SEC) in cryptocurrency staking, suggesting that new guidelines may be announced soon. The SEC is currently in the process of gathering industry feedback to solidify its staking policies.

FOX Business reporter Eleanor Terrett reported that the SEC is paying special attention to cryptocurrency staking. Sources close to the regulator have revealed that new guidance on the practice could be released soon. Additionally, the SEC has requested a detailed memo from the industry on the various types of staking and their advantages, indicating that a guide or some form of directive is imminent.

🚨NEW: According to a source that recently spoke with the @SECGov , the agency is “very, very interested” in staking, even asking industry for a memo detailing the different types of staking and their benefits. This source expects to see some kind of agency guidance on staking in… https://t.co/U9V0aQqTBb

—Eleanor Terrett (@EleanorTerrett) February 20, 2025

In the past, the SEC has taken significant steps, such as recognizing a 19b-4 filing by the Cboe exchange, which sought approval to incorporate staking capabilities into the 21Shares Core Ethereum ETF (CETH). This move was seen as a positive development, as crypto ETFs were previously prohibited from engaging in staking activities under SEC Chairman Gary Gensler, citing potential securities law violations.

The SEC, through its Crypto Task Force, also recently discussed the inclusion of staking in cryptocurrency exchange-traded products (ETPs), in collaboration with Jito Labs and Multicoin Capital Management. During the meeting, two staking models for ETPs were reviewed: the Services Model, which employs validation services to facilitate the staking of assets with timely redemptions, and the LST Model, which utilizes liquid staking tokens to represent staked assets.

These discussions reopened previous issues regarding staking on ETPs, such as delays in redemptions, tax consequences, and the legal status of staking services. Participating companies highlighted that the exclusion of staking decreases both potential returns for investors and the overall security of the network by limiting the staking of assets.