SEC Crypto Task Force Meets with Blackrock to Examine Crypto ETF Staking and Possibilities
BlackRock Engages SEC Crypto Task Force on Advanced ETF Features like Staking and Options
Delegates from BlackRock, globally recognized as the preeminent asset management entity, recently participated in discussions with officials from the U.S. SEC concerning the potential integration of staking functionalities and options trading capabilities within cryptocurrency-based exchange-traded funds (ETFs).
High-Level Dialogue on Crypto Asset Regulation
A formal memorandum confirms that BlackRock’s team convened with personnel from the SEC’s specialized crypto task force on a Friday.
The central theme of this interaction, as outlined in the memo, revolved around exploring “approaches to addressing issues related to regulation of crypto assets.”
Industry Drive for Staking in Crypto Investment Products
In recent months, there has been a concerted effort by various financial institutions to secure the SEC’s endorsement for the inclusion of staking features in crypto ETFs.
Notably, Robert Mitchnick, who heads BlackRock‘s Digital Assets division, had previously, in March, articulated the firm’s interest in the prospect of enabling staking for spot Ethereum ETFs.
While acknowledging the “complex challenges” inherent in such an endeavor, Mitchnick posited that its successful implementation could signify a “step change upward” for these financial instruments.
The aforementioned memorandum also corroborates Mitchnick’s attendance at the Friday meeting with the SEC.
Specific Considerations for Staking and Options Discussed
During this high-level engagement, BlackRock’s representatives reportedly presented detailed “considerations for facilitating ETPs [Exchange-Traded Products] with staking capabilities.”
The dialogue also extended to defining the operational parameters for options on crypto ETFs, including the establishment of clear position and exercise limits, as well as requisite liquidity thresholds, according to the information contained in the regulatory filing.
Context of Prior SEC Approvals
It is pertinent to note that these discussions took place subsequent to the SEC’s decision in the preceding month to authorize options trading on several spot Ethereum ETFs, including those managed by BlackRock, Grayscale, and Bitwise.
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