Cboe BZX Proposes Ethereum Staking for ETF Amidst SEC Review

The Cboe BZX Exchange has proposed an amendment to the rules governing the 21Shares Core Ethereum ETF, which would enable staking of Ethereum held within the Trust. This move comes amidst a review by the U.S. Securities and Exchange Commission (SEC) and reflects a shift in regulatory attitudes towards cryptocurrency investments.

In a filing submitted to the SEC on February 13th, the Cboe BZX Exchange outlined its intention to modify the rules for the 21Shares Core Ethereum ETF. This proposal, if approved, would allow for the staking of Ethereum within the Trust. Staking, a process by which investors can earn rewards for locking up their assets, has been a contentious issue in the past, with former SEC Chairman Gary Gensler categorizing proof-of-stake tokens as securities.

The SEC's approval of the Ethereum ETF last year, along with similar approvals for other major institutions, marked a significant milestone in the evolution of crypto regulation. However, many firms had previously excluded staking components from their plans before receiving authorization. The establishment of a dedicated crypto workgroup within the SEC signals ongoing efforts to clarify which tokens may be classified as "non-securities," potentially paving the way for broader market acceptance.