SEC Commissioner Hester Peirce has indicated a potential reconsideration of staking for Ethereum ETFs, a move that could significantly impact the cryptocurrency market. This comes as Ethereum exchange-traded funds are poised to debut in trading.
Potential Reconsideration of Staking
Initially, major players such as VanEck and Fidelity had proposed the inclusion of staking for the Ethereum held in their ETFs. However, this feature was removed before the SEC gave its approval in May. Now, Commissioner Peirce has reopened the conversation, suggesting that the door might not be closed on staking for Ethereum ETFs after all.
Peirce’s Interview with Coinage
In an interview with Coinage, Peirce expressed her openness to reevaluating the inclusion of staking in Ethereum ETFs. “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,” she stated. However, she emphasized that her views do not necessarily reflect the consensus among other SEC Commissioners.
BREAKING: SEC Commissioner Hester Peirce says Ethereum ETF staking "always open for reconsideration as far as I'm concerned" in new Coinage interview
Coins | $ETH #Ethereum pic.twitter.com/5UQgIxp3PF
— Coinage (@coinage_media) July 17, 2024
Implications for the Cryptocurrency Market
Staking Ethereum involves locking up ether tokens to help secure the proof-of-stake blockchain, which currently yields approximately 4% APY in additional coins. Despite SEC Chair Gary Gensler’s long-standing stance that staking constitutes an investment contract, Peirce’s comments signal a possible shift in regulatory approach.
As the cryptocurrency market eagerly anticipates the launch of Ethereum ETFs, the potential inclusion of staking could significantly enhance the appeal of these investment products. The industry will be closely monitoring further developments from the SEC on this pivotal issue.
