SEC Commissioner Peirce Opens Door For Ethereum ETF Staking

Securities and Exchange Commission (SEC) Commissioner Hester Peirce has suggested that the inclusion of staking features in Ethereum ETH/USD Exchange-Traded Funds (ETFs) could be open to reconsideration in the future.

What Happened: This development comes as Ethereum ETFs are poised to debut for trading as early as next week.

Commissioner Peirce, known for her crypto-friendly stance, stated, “I think certainly something like staking, or any feature of the product — we saw that on the Bitcoin exchange traded products too, right? There were features of the product that some people would have liked to see included but weren’t — those are always open for reconsideration as far as I’m concerned.”

However, she emphasized that these views may not be shared by other Commissioners.

The comment is particularly significant as Ethereum ETF issuers had originally filed applications including staking features, before removing such language in May ahead of final approvals.

This move was likely in response to SEC Chair Gary Gensler‘s long-held position that staking constitutes an investment contract.

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Why It Matters: Commissioner Peirce, in an interview with Coinage, also touched on the recent applications for Solana SOL/USD exchange-traded products from VanEck and 21Shares, suggesting that alternative paths to ensuring an unmanipulated market might be considered on a case-by-case basis.

In a positive development for the crypto industry, Peirce expressed enthusiasm about Congress’s recent efforts to provide legal frameworks for crypto projects, citing the passage of the FIT21 bill in the House.

She hopes this legislative progress will help avoid unnecessary delays and drama around the launch of crypto-related financial products in the future.

These revelations come at a crucial time for the cryptocurrency and digital assets industry.

What’s Next: Investors, regulators, and industry leaders will have the opportunity to delve deeper into these topics at Benzinga’s Future of Digital Assets conference on Nov. 19.

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