Potential Reconsideration of Staking
While the U.S. Securities and Exchange Commission (SEC) approved spot Ethereum ETFs minus the staking option, Commissioner Hester Peirce says this could be open for reconsideration. Peirce shared this view during an interview with Coinage, noting that the exclusion of staking for spot Ethereum ETFs or other spot ETF features can be reassessed.
“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”, the SEC Commissioner noted. Peirce declined to comment on what happened as the SEC engaged issuers and the dropping of staking.
Analyst Insights on Reconsideration
When the SEC approved spot Ethereum ETFs in May, the issuers’ filings did not include staking, viewing staking as an investment contract. The Commission sued Ethereum development firm Consensys in June over this issue, specifically for offering staking via the company’s MetaMask wallet.
Commenting on the SEC Commissioner’s remarks, Bloomberg’s senior ETF analyst Eric Balchunas said Peirce’s view is what many have thought to be the case. Balchunas noted in a comment on X that reconsideration is likely for both staking and in-kind creation or redemptions for spot ETH and spot BTC ETFs. He added that this is more likely should there be a change in the US government after the upcoming election.
At the same time, the crypto market has made a recovery driven by the expectations of a possible spot Ethereum ETF trading debut. The price of Ethereum shot up to beyond $3,500 on July 17, and likewise, the excitement was also felt in Solana and some other altcoins which recovered to very critical thresholds. The market condition is quite positive which proposes the fact that the changing regulations and crypto products play an essential role in the market evolution.
Conclusion
The notion of Ethereum plans to treat the e-money used for staking as a staking opportunity is critical to the dynamic shifts that occur in the crypto market regulations and market responses. As the SEC and the rest of the industry grapple with the constantly changing state of the market, the possibility of the introduction of new investment features might further steer the market tendencies and push for new strategies by investors.
