As a seasoned crypto investor with years of experience navigating the volatile world of digital assets, I’m always keeping a close eye on regulatory developments that could impact the industry. The recent news regarding SEC Commissioner Hester Peirce’s remarks about potentially reconsidering the exclusion of staking for Ethereum (ETH) ETFs is certainly intriguing.
The SEC in the United States has given the green light to Ethereum ETF proposals that don’t include the staking feature, but Commissioner Hester Peirce indicates that this decision might be subject to future review.
During an interview with Coinage, Peirce expressed that the ban on staking for Ethereum (ETH) and other spot ETFs could be reconsidered.
The SEC Commissioner acknowledged that certain product features, which some people felt were necessary, were absent. However, he stressed that these elements remain open for potential future consideration.
Peirce declined to comment on what happened as the SEC engaged issuers and the dropping of staking.
NEW: SEC Commissioner Peirce indicates that Ethereum ETFs with staking capabilities could be subject to reevaluation
“In my opinion, any product feature including staking is always open for reassessment”
— Zack Guzmán (@zGuz) July 17, 2024
Analyst on why a review for staking in ETH ETFs may happen
In May, the SEC granted approval for spot Ethereum ETFs without staking provisions in the issuers’ filings. This omission stemmed from the SEC’s perspective that staking constitutes an investment contract. In June, the commission took legal action against Ethereum development firm Consensys due to their offering of this product through MetaMask wallet.
In response to the SEC Commissioner’s statements, Eric Balchunas, a seasoned ETF analyst at Bloomberg, expressed his agreement with her perspective, which aligns with the beliefs of many.
Balchunas pointed out in a remark on X that the possibility of reevaluating staking and in-kind exchanges or conversions for spot Ethereum and Bitcoin ETFs increases, especially if there’s a shift in the US government following the upcoming elections.
Among the contenders, Trump is currently favored to secure the victory based on current predictions, while the cryptocurrency market’s wagers on Polymarket indicate a strong optimism within the industry regarding this outcome.
During this time, the cryptocurrency market has experienced a rebound due to anticipation that Ethereum-backed spot Exchange Traded Funds (ETFs) will begin trading next week. The value of Ethereum surged above $3,500 on July 17, and this optimism also boosted the prices of Solana and other alternative coins back to significant levels.
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2024-07-17 19:36