SEC Explores Staking in Crypto ETPs with Jito Labs and Multicoin Capital
In a recent update, the Securities and Exchange Commission (SEC) recently met with Jito Labs and Multicoin Capital to explore exciting possibilities – increasing the content of exchange-traded products (ETPs). The meeting is part of the SEC’s ongoing push to shape a clear, structured regulatory framework for cryptocurrency investment.
On February 14, the U.S. SEC’s crypto task force released a memorandum reveal Meeting. The discussion was held on February 5 with a focus on integrating staking into encryption-based ETP. Participants included Jito Labs CEO Lucas Bruder, Clo Rebecca Rettig and Multicoin Capital Capital Partner Kyle Samani and Greg Xethalis General Counsel.
It is worth noting that the discussion centers on two main topics: whether stacking can be added to encrypted ETP and how to implement it. The document shows that adding points can benefit investors while helping issuers secure the blockchain network.
It is worth noting that the task force is considering two options in ETP: one is to place a portion of the assets through the service provider running the validator, and the other is to create a liquid fixed token for each fixed asset, essentially Redemption is allowed.
“The harm of restricting cryptocurrency ETP (i) investors, by weakening the productivity of basic assets and depriving investors of potential gains, and (ii) cybersecurity, by preventing the majority of the recurrent supply of assets from being pasted” Conference Note Reading .
According to these documents, SEC’s stale ETFs have been cautious for three reasons. The lockdown “unbounded period” can be imagined to slow down the redemption process for investors and complicate the tax impact. It is uncertain whether trading as a service as a securities company.
Additionally, the SEC is reviewing several recommendations from the Solana (Sol) ETF as asset managers and exchanging documents to list alternative encrypted ETFs. Last year, Vaneck became the first company to apply for a Sol Exchange listing product, hoping to see a regulatory shift in amid the Trump election victory in order to gain the advantage of the first step.
