SEC Delays Ethereum ETF Staking Approval

The US Securities and Exchange Commission (SEC) has delayed its judgment on Grayscale's Ethereum ETF staking permission. While awaiting the approval of pro-crypto commissioner Paul Atkins, the SEC suffers this setback.

On February 14, 2025, NYSE Arca, Inc. recommended allowing staking in Grayscale's Ethereum Trust ETF and Ethereum Mini Trust ETF listing and trading guidelines to the SEC.

The plan was made public on March 3, 2025. Under the Securities Exchange Act of 1934, the SEC must act on such proposals within 45 days, although it might extend for good cause.

To thoroughly review the proposal, the SEC has extended its decision deadline to June 1, 2025, from April 17, 2025.

Fox journalist Eleanor Terret said that the SEC is also postponing its ruling on WisdomTree and VanEck's Bitcoin and Ethereum spot ETF in-kind creations and redemptions until June 3, 2025.

According to Terret, the in-kind procedure enables Bitcoin and Ethereum to be exchanged directly rather being converted into currency, as the SEC required under Gary Gensler.


Atkins' SEC arrival was delayed by procedural measures requiring President Trump's consent and a ceremonial swearing-in. This sign-off is anticipated shortly, but it has left the agency in transition, which might affect crypto regulation.

This legislative change may mark a turning point for the bitcoin sector. The SEC was attacked for its strict, enforcement-heavy cryptocurrency policy under Gensler, which inhibited innovation and caused market uncertainty.

The advent of pro-crypto Atkins may signal a new age of better regulatory settings.

Atkins' stance might allow asset managers to launch altcoin ETFs to increase exposure to XRP, Cardano, and Solana.

ETH, the second-largest cryptocurrency, is trading at $1,630 on Monday, up 6% weekly. After ETH dropped below $1,380 in February and March, the coin is still down 15%.

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