U.S. Senators Push for SEC to Rethink Crypto Staking in Exchange Funds

A bipartisan group of U.S. senators sent a letter to the Securities and Exchange Commission (SEC) urging them to reconsider allowing cryptocurrency exchange-traded funds (ETFs) to offer staking. Previously, under former Chair Gary Gensler, the SEC had rejected the inclusion of staking in ETFs and taken enforcement actions against companies like Kraken for offering staking services, arguing it was like offering unregistered securities. Staking involves locking up digital tokens to support blockchain operations in exchange for rewards and is considered crucial for the security of blockchains like Ethereum. The senators, including Republicans and Democrats like Cynthia Lummis, Kirsten Gillibrand, and Ron Wyden, believe allowing staking in ETFs could benefit investors. The letter was addressed to Acting Chairman Mark Uyeda.