By Nermeen Nabil Khear 
According to meeting notes published this past Friday, the discussion focused on how staking could benefit investors and strengthen blockchain security.
The SEC is currently reviewing multiple proposals for Solana ETFs as asset managers rush to bring alternative crypto ETFs to market. VanEck was the first to file for a SOL-based exchange-traded product last year, hoping to gain an edge if regulatory sentiment shifts in favor of crypto.
SEC Explores Staking in ETFs Despite Concerns and Challenges
During the meeting, Jito Labs CEO Lucas Bruder and Chief Legal Officer Rebecca Rettig, alongside Multicoin’s Managing Partner Kyle Samani and General Counsel Greg Xethalis, spoke with SEC staff about how staking and restaking could be practically integrated into ETFs. The meeting notes highlighted concerns that restricting staking in crypto ETFs could hurt investors by limiting potential returns and weakening network security.
The task force is considering two possible routes to allow staking in ETFs. One option would let a portion of an ETF’s assets be staked through service providers running validators. The second option would involve minting a liquid staking token for each staked asset, creating a form of redemption. Either way, these proposals could open the door for investors to earn staking rewards while holding ETFs.
BREAKING:
SEC’s CRYPTO TASK FORCE IS CONSIDERING INTEGRATION OF STAKING INTO ETPs!
BULLISH!!
pic.twitter.com/9uS4UyFYEn
— Good Morning Crypto (@AbsGMCrypto) February 14, 2025
Despite growing interest, the SEC has historically been hesitant about staking ETFs for three main reasons. First, the lockup periods required for staking could slow down redemptions, making it harder for investors to access their funds. Second, staking’s tax implications remain uncertain, which could create headaches for investors and regulators alike.
More About Crypto ETFs
Three years before Abu Dhabi’s sovereign wealth fund revealed a $436 million investment in Bitcoin ETFs, Mike Novogratz, the CEO of Galaxy Digital, urged sovereign wealth funds to diversify their portfolios by investing in Bitcoin. Novogratz, a prominent advocate for cryptocurrency, highlighted the growing importance of digital assets in the global financial landscape.
Mike Novogratz called for Sovereign Wealth Funds to diversify into Bitcoin three years before Abu Dhabi’s fund disclosed a $436 million investment in Bitcoin ETFs. pic.twitter.com/dOfEy1pjjb
— Bitcoin News (@BitcoinNewsCom) February 16, 2025
He believed that Bitcoin could serve as a hedge against traditional market risks and inflation, encouraging large institutional investors to consider allocating a portion of their holdings to the cryptocurrency.
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The post SEC Discusses ETFs Staking with Jito and Multicoin appeared first on Altcoin Buzz.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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