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.

• 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.

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