**🥺 Crypto Giants Ask SEC to Allow LST in Solana ETP**
Jito Labs has sent a letter to the SEC requesting approval to use Liquid Staking Tokens (LST) in Solana-based exchange-traded products.
- LSTs are liquid tokens representing staked assets while remaining tradable.
- They make ETPs more flexible—providing yield, liquidity, and risk diversification.
- Custodians can manage products more easily, and investors earn rewards without technical hurdles.
**Jito Labs' Arguments:**
- LSTs reduce risks, increase transparency, and simplify operations.
- They are not securities—the SEC already acknowledged this in May 2025.
- LSTs function as decentralized "pool shares," not centralized yield promises.
If approved, this could pave the way for more efficient and profitable PoS-based financial instruments.
**Supported by:** Grayscale, Franklin Templeton, VanEck, Bitwise, and others. 👉 Minor for adoption now—SEC's SOL-ETF decision (Jul 31) matters more, but LST approval could later boost institutional yield strategies. Watch HK stablecoin licenses (Sep 15).
#SOL #SEC #LST #ETP #PoS