U.S. senators are urging the Securities and Exchange Commission (SEC) to reevaluate its stance on allowing crypto staking in exchange-traded funds (ETFs). The lawmakers argue that staking is crucial for the vitality of digital asset protocols. Initially, issuers of crypto ETFs intended to incorporate staking features, but the SEC previously opposed this idea, viewing it as a potential unregistered securities offering. Under the leadership of Gary Gensler, the SEC had taken enforcement actions against firms like Kraken in relation to staking practices. The bipartisan senators, including Cynthia Lummis, are advocating for the SEC to reconsider these regulations, emphasizing that protocol staking enhances the security of networks such as Ethereum. They believe that permitting staking in certain digital asset ETFs could offer significant benefits to investors in the evolving cryptocurrency landscape.

Source 🔗