The SEC has truly become pro-crypto now. Jito Labs and Multicoin proposed SEC, which includes staking encrypt to trading and ETF transactions. Gary Gensler, the former chairperson of SEC disliked digital assets trade and ignored the proposal.
What is crypto staking?
The process is depositing digital assets or crypto coins with the help of smart contracts. It helps increase the security of the blockchain used.
Staking is rewarding as well. You will get your share of the yield if you agree to staking. But, the former SEC chairperson did not want to try this option.
He restricted the phenomenon stating that the federal guidelines do not support such phenomena. He went to the length of preventing companies like Kraken from practicing staking.
A Changed Stance Now
After Donald Trump was elected for the last time, the SEC and its role is changing. Mark Uyeda, who is more scientific and practical, has laid down a committee to evaluate the regulations which are applicable now.
What does the crypto task force say?
According to the task force, the SEC would evaluate what will happen when staking is allowed for ETPs.
There’s a reason why JITO Labs wants staking. Firstly, they can enjoy the net benefit from the blockchain. Secondly, it might help in boosting the local cryptocurrencies. Meanwhile, the revaluation process for staking has started.
Meanwhile, remember that the spot ETF appropriable is still under the review process. Hence adoption of a new methodology would be a grave challenge in this regard.
