The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale's proposed rule change that would allow its spot Ethereum exchange-traded funds (ETFs) to engage in staking. In a letter dated April 14, the regulator extended the deadline to June 1 for either approving or rejecting the proposal, which aims for the ETFs to stake ETH in Ethereum's proof-of-stake validation system while ensuring existing custody protections remain intact. The NYSE Arca initially submitted the proposal on February 14. The SEC's move indicates ongoing scrutiny amid a volatile cryptocurrency market, particularly as Ethereum's price has fallen 15% recently. While the stakes remain uncertain, analysts, including Bloomberg's James Seyffart, predict that the SEC may ultimately approve staking for these ETFs by the end of 2025. Meanwhile, the SEC has shown a more crypto-friendly posture under recent leadership, having recently approved spot ETFs, suggesting a potential shift in regulatory attitudes towards cryptocurrency.

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