US SEC is “Very, Very Interested” in Crypto Staking, Seeks Industry Input for New Guidelines

Highlights:

• SEC may soon release new crypto staking rules after industry consultations and detailed reports.
• Jito Labs and Multicoin proposed two staking models for crypto ETPs to the SEC.
• 21Shares seeks approval for the first U.S. Ethereum ETF with staking benefits for investors.

Eleanor Terrett reported Thursday that the U.S. Securities and Exchange Commission (SEC) is increasingly focusing on crypto staking and might soon release new guidelines on the practice, citing a source who recently communicated with the securities regulator. The SEC has called on the industry to provide a comprehensive report on staking types and their benefits, and new crypto staking rules could be coming soon.

Terrett stated:

“The agency is “very, very interested” in staking, even asking industry for a memo detailing the different types of staking and their benefits.”

🚨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

SEC Crypto Task Force Discusses Staking in ETFs with Jito and Multicoin

Last week, the SEC’s Crypto Task Force met with representatives from Jito Labs and Multicoin Capital Management to discuss adding staking features to crypto exchange-traded products (ETPs). During the discussion, the firms proposed two models for staking in crypto ETPs.

The first, the Services Model, would allow ETPs to stake assets through validator service providers while ensuring quick withdrawals. The second, the LST Model would let ETPs hold liquid staking tokens that represent the staked versions of the original assets. 

The meeting covered staking issues in ETPs, including withdrawal timing, tax rules, and securities concerns. The firms stated that blocking staking in crypto ETPs harms investors. It reduces the productivity of the underlying asset and limits potential returns. It also affects network security by stopping a large portion of the circulating supply from being staked.

🚨NEW: Some @SECGov staffers in the divisions of Trading and Markets actually held a staking webinar with some leading crypto players this week, I’m told.

Meanwhile, the crypto task force has been asking industry for input on issues it wants to see them engage on.

The level of… https://t.co/VZCahgnkxT

— Eleanor Terrett (@EleanorTerrett) February 14, 2025

SEC Acknowledges 21Shares Ethereum ETF Staking Proposal

On February 20, the SEC acknowledged receiving the 21Shares Ethereum ETF staking proposal after reviewing Cboe BZX Exchange’s filing. If approved, it would mark the first Ethereum ETF offering staking in the U.S. The plan aims to generate additional profits through ETH staking, which would benefit investors. The trust will own all staked Ethereum. This differs from staking models that faced regulatory issues.

SEC has *acknowledged* Cboe’s 19b-4 filing seeking approval of staking in 21Shares Core Ethereum ETF…

No surprise, but nice to see progress. pic.twitter.com/DoM0HbmSse

— Nate Geraci (@NateGeraci) February 19, 2025

The SEC has maintained strict rules for proof-of-stake assets. Under former Chair Gary Gensler, staking activities were classified as securities. As a result, several Ethereum ETF issuers removed staking from their filings.

Under the Trump administration, the SEC has taken a more crypto-friendly approach. It formed a dedicated crypto task force and is re-evaluating the classification of certain tokens. Analysts believe clearer staking regulations could boost adoption, particularly among institutions seeking higher yields in digital assets.

21Shares and ARK Invest had earlier planned a staked Ethereum ETF but dropped the staking option. ARK Invest later pulled out of the Ethereum ETF project, leaving 21Shares to continue with the 21Shares Core Ethereum ETF.