#secstacking As of February 2025, the cryptocurrency industry is experiencing significant regulatory developments, particularly concerning the U.S. Securities and Exchange Commission (SEC) and its stance on crypto staking.
SEC's Evolving Position on Crypto Staking
In February 2023, the SEC charged Kraken for offering an unregistered staking-as-a-service program, resulting in a $30 million settlement. However, recent indications suggest a potential shift in the SEC's approach. Reports indicate that the SEC is "very, very interested" in the benefits of staking and is engaging with industry stakeholders to explore its integration into regulated financial products.
This shift is further evidenced by the SEC's recent acknowledgment of Cboe's filing to list the 21Shares Ethereum Core Exchange Traded Fund (ETF), which includes provisions for staking. If approved, this would mark the first U.S. ETF allowing staking rewards, signaling a more accommodating regulatory environment for such offerings.
Political Influences and Regulatory Changes
The re-election of President Trump has introduced a more crypto-friendly administration, leading to significant changes within the SEC. The appointment of Paul Atkins as the new SEC Chair, replacing Gary Gensler, has been pivotal. Atkins' leadership is anticipated to foster a more predictable regulatory framework for cryptocurrencies, moving away from the previous "regulation by enforcement" approach.
This political shift has emboldened the crypto industry to enhance its political influence and seek mainstream acceptance. Early successes include the repeal of certain accounting rules by the SEC and executive orders considering the formation of a government reserve of cryptocurrencies. These developments reflect a more collaborative relationship between regulators and the crypto industry.
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