Grayscale Meets SEC to Discuss Integrating Staking Features into Ethereum ETPs

Grayscale Meets SEC to Discuss Integrating Staking Features into Ethereum ETPs

U.S. Securities and Exchange Commission (SEC) cryptocurrency task force held a meeting with representatives from Grayscale Investments and NYSE Arca to discuss a proposal to add staking functionality to Ethereum-based exchange-traded products (ETPs). According to Crypto Times, key topics included Grayscale’s Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH).

Grayscale emphasized the value of integrating staking features, arguing that it would allow investors to participate in Ethereum’s Proof-of-Stake (PoS) network validation process and earn additional returns.

Staking Platform and Asset Protection Measures
To ensure a secure and investor-friendly experience, Grayscale introduced a “Point-and-Click Staking Platform.” Under this model, asset managers retain full responsibility for Ethereum token custody, minimizing the security risks typically associated with traditional staking operations. Grayscale asserted that their platform meets both investor protection standards and operational norms for PoS networks.

Regulatory Developments
The SEC has postponed its decision on staking integration, extending the review deadline from April 17, 2025, to June 1, 2025. This extension is intended to allow for a more comprehensive evaluation of staking features within ETP structures. Notably, the delay coincides with the appointment of Paul Atkins, a figure familiar with digital assets, as the new SEC Chair.

Grayscale’s Strategy and Outlook
Grayscale is leveraging international regulatory precedents to advocate for its proposal, seeking to align U.S. policies with global standards. Ongoing dialogue and cooperation between Grayscale and the SEC are expected to play a critical role in determining whether staking functionality will be officially incorporated into Ethereum ETPs.