A bipartisan group of U.S. lawmakers is challenging the SEC's exclusion of staking in exchange-traded products (ETPs), arguing it threatens both investor protections and America's competitiveness in the digital asset market. Staking, particularly on proof-of-stake networks like Ethereum, is a crucial process for securing the network and does not represent a traditional investment product. While countries like Switzerland and Canada have integrated staking into their ETPs, the U.S. remains hesitant, pushing investors towards offshore alternatives, which could undermine domestic markets. The lawmakers emphasize that access to staking rewards is necessary for U.S. products to remain competitive, and they urge the SEC to recognize staking as a technical mechanism vital for network security. As the digital asset sector continues to evolve, adjusting regulations surrounding staking could help bolster investor protections and maintain U.S. leadership in this space.

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