Bipartisan Lawmakers Urge SEC to Allow Staking in ETPs
The U.S. is addressing its lag in staking policy, with significant developments in the first 30 days of the Trump Administration. Key points include:
- Staking has been prioritized in Congressional hearings and the SEC's new crypto task force.
- A bipartisan group of lawmakers is challenging the SEC's exclusion of protocol staking from exchange-traded products (ETPs).
- The SEC's stance may undermine investor protections and U.S. market competitiveness.
- Other countries are adopting staking in their digital asset ETPs, while the U.S. risks falling behind.
- The lack of staking options may push American investors to seek offshore alternatives.
- Technical risks associated with staking are minimal; only 0.001% of staked ether has faced penalties.
Congress emphasizes the need for a balanced regulatory approach that recognizes staking as crucial for network security. The SEC holds the authority to allow staking in ETPs, aligning with its mandate to protect investors and support U.S. leadership in global financial markets. This situation presents an opportunity for progress in the digital asset sector as stakeholders await the SEC's response.