VanEck and SEC Tackle Crypto ETF Challenges: Custody, Staking, and Innovation Balance

The U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force convened with VanEck, a top-10 ETF issuer, on September 25, 2025, to address regulatory challenges surrounding tokenized exchange-traded funds (ETFs), liquid staking tokens, decentralized finance (DeFi), and digital asset custody. The meeting, part of an ongoing series of engagements between regulators and market participants, aimed to explore how existing securities rules could be adapted to accommodate blockchain-based financial products. VanEck, which reported $132.9 billion in assets under management as of June 30, 2025, submitted a detailed agenda and supporting materials ahead of the session.

The discussion focused on the tokenization of ETFs and the implications for investor protections and market structure. VanEck sought guidance on how the SEC’s proposed Generic Listing Standards for commodity and crypto-based ETFs might apply to staking products and tokenized fund structures. The firm also raised questions about liquidity risks associated with liquid staking tokens within ETF wrappers, emphasizing the need for clarity on how exchanges and issuers could manage these risks. Additionally, the meeting addressed broader regulatory considerations, including the oversight of DeFi platforms, tokenized securities, and initial coin offerings (ICOs) under current securities laws.

VanEck’s delegation included key figures such as Wyatt Lonergan (General Partner), Kyle F. DaCruz (Director of Digital Assets Product), and Jonathan R. Simon (General Counsel), among others. The session underscored the SEC’s effort to engage directly with industry leaders to shape a regulatory framework that balances innovation with investor safeguards. Nate Geraci, president of The ETF Store, highlighted the meeting’s significance, suggesting it could mark a turning point for crypto ETFs and tokenization. He noted that the agenda’s scope, which extended beyond routine compliance discussions, indicated potential regulatory steps that could reshape the ETF market.

A critical focus of the meeting was the custody of digital assets. VanEck proposed that the SEC update the Advisers Act Custody Rule to reflect modern practices in digital asset storage, including the use of Multi-Party Computation (MPC) technology for securing private keys. The firm argued that MPC and other tech-driven custody models require tailored regulatory approaches to ensure both security and compliance. This aligns with the SEC’s broader interest in understanding how blockchain innovations can be integrated into traditional financial systems without compromising investor trust.

The implications of the meeting extend beyond VanEck, as the SEC’s potential rule changes could influence how fund managers design and list tokenized ETFs. By addressing uncertainties around staking, DeFi integration, and custody, regulators may create a more structured environment for crypto-based investment products. This could accelerate the adoption of tokenized ETFs, which offer benefits such as programmable compliance, real-time settlement, and enhanced transparency. However, the success of these initiatives will depend on the SEC’s ability to balance innovation with risk mitigation, particularly in areas like liquidity management and market integrity.

The meeting also highlighted the SEC’s commitment to fostering dialogue with industry stakeholders. By engaging firms like VanEck, the regulator aims to develop a framework that supports the growth of crypto markets while addressing concerns about fraud, market manipulation, and systemic risks. This approach reflects a shift from the Biden administration’s aggressive enforcement actions against the crypto sector to a more collaborative strategy under the Trump administration, which has signaled a focus on positioning the U.S. as a global leader in blockchain technology.