Particle.news
Download on the App Store
3 ARTICLES
·
2mo ago

U.S. Lawmakers Push SEC to Allow Crypto Staking in ETFs

A bipartisan group of senators urges the SEC to reconsider its stance on staking in exchange-traded funds, citing investor benefits and global competitiveness.

sec
Senator Cynthia Lummis (Jesse Hamilton/CoinDesk)
Image

Overview

  • The SEC's previous leadership prohibited staking in crypto exchange-traded funds (ETFs), citing securities law concerns, but this stance is now under review.
  • A bipartisan Congressional letter, led by Senators Cynthia Lummis and Kirsten Gillibrand, argues that staking is essential for blockchain security and investor returns.
  • Staking involves locking cryptocurrency to validate blockchain transactions, with participants earning rewards generated by the protocol rather than a centralized authority.
  • Critics warn that excluding staking from ETFs could harm U.S. competitiveness in digital asset markets, as other countries like Canada and Germany embrace the practice.
  • The SEC's new Crypto Task Force and Acting Chair Mark Uyeda are being urged to consider allowing staking in ETFs to align with investor protection goals and market leadership.