SEC May Reconsider Ethereum ETF Features

Hester Peirce, the commissioner at the Securities and Exchange Commission (SEC), has revealed that Ethereum exchange-traded fund (ETF) staking is open for reconsideration.

In an interview with Zack Guzman, Peirce discussed the potential for revisiting the inclusion of staking in Ethereum ETFs despite its initial exclusion from the applications.

Peirce highlighted that any product features, including staking, could be subject to reevaluation based on market needs and regulatory developments. "There were features of the product that some people would have liked to see included but weren't. And those are always open for reconsideration as far as I'm concerned," stated Peirce.

The context of this discussion arises from the SEC's previous approval of Ethereum ETFs, which excluded staking due to regulatory concerns.

However, Peirce's remarks suggest that the evolving landscape of digital assets might prompt a reassessment of this decision. The Commission has already approved spot Bitcoin and spot Ethereum ETFs and received applications from 21Shares and VanEck for their spot Solana ETFs.

Crypto Regulation to Take a Shift

Though the SEC has singled out the crypto industry and engaged an "Enforcement-First" crypto regulation strategy by going after companies with relentless lawsuits, Patrick Daugherty, a partner at Foley & Lardner LLP, believes there could be a shift post-elections.

Daugherty presumed that if former President Donald Trump takes the Oval Office, his pro-crypto stance would be significantly positive for the crypto sector. Trump has demonstrated support, promised no Central Bank Digital Currencies (CBDCs), and pushed for the right to self-custody.

Daugherty also indicated that if President Joe Biden wins the upcoming election, he would likely designate a new Chair of the SEC to replace the currently opposed Gary Gensler.

This potential change in leadership could influence the future regulatory environment for digital assets and cryptocurrencies.

The evolving regulatory landscape and the potential for changes in leadership after elections highlight the crypto industry's dynamic nature.

As the market continues to grow and develop, the SEC's stance on critical issues, such as staking in Ethereum ETFs, will be closely watched by industry participants and investors alike.