SEC Engages Crypto Industry on Staking: Policy Shift Imminent

The U.S. Securities and Exchange Commission (SEC) has expressed significant interest in the realm of crypto staking, signaling potential changes in the regulatory landscape. As the digital asset sector anticipates policy shifts under the Trump administration, the SEC has begun engaging with industry players to gather insights ahead of issuing new guidelines.

According to a source who spoke with the SEC, the regulator is actively seeking detailed information on various types of staking and their advantages. This proactive approach suggests that the SEC is poised to provide guidance on crypto staking in the near future. The SEC's interest in staking is not new, as it previously acknowledged a 19b-4 filing by the Cboe exchange, which sought approval for including staking features in the 21Shares Core Ethereum ETF (CETH).

Last week, the SEC's Crypto Task Force held discussions with Jito Labs and Multicoin Capital Management to explore the possibility of adding staking to crypto exchange-traded products (ETPs). The meeting focused on two staking models: the Services Model, which uses validator services to allow asset staking with timely redemptions, and the LST Model, which uses liquid staking tokens to represent staked assets. The firms emphasized that excluding staking from ETPs reduces potential returns for investors and weakens the overall security of the network by limiting asset staking.

The SEC's engagement with the industry signals a shift in its approach to crypto staking, which was previously prohibited under the tenure of former SEC Chair Gary Gensler. As the SEC seeks to better understand the nuances of staking, it is likely that the regulator will provide clearer guidance on the practice, potentially opening the door for more widespread adoption in the digital asset sector.