Crypto Staking: Jito Labs and Multicoin Push SEC for Embrace

The crypto landscape is evolving, with Jito Labs and Multicoin advocating for the SEC to embrace crypto staking. This move could significantly impact the digital asset trading and ETF transactions landscape. But will the SEC finally agree?

Crypto staking, a process involving depositing digital assets or crypto coins using smart contracts, enhances blockchain security. It also offers rewards for participants. However, former SEC chairperson Gary Gensler was not a fan of digital assets trading and ignored the proposal, citing federal guidelines that did not support such phenomena. He even prevented companies like Kraken from practicing staking.

After Donald Trump's last election, the SEC's role has been shifting. Mark Uyeda, a more scientific and practical figure, has established a committee to evaluate applicable regulations. The crypto task force is now considering the implications of allowing staking for ETPs.

Jito Labs' interest in staking is twofold: it can enjoy the net benefit from the blockchain and potentially boost local cryptocurrencies. The revaluation process for staking has begun, but the spot ETF approval is still under review, presenting a significant challenge for adopting a new methodology.