BlackRock, the world’s largest asset management firm, met with staff from the U.S. Securities and Exchange Commission (SEC) on Friday to discuss key aspects of cryptocurrency exchange-traded funds (ETFs), including staking capabilities and options trading.
According to a memorandum of the meeting, representatives from BlackRock engaged with members of the SEC’s crypto task force. The discussions centered on “approaches to addressing issues related to regulation of crypto assets.”
A significant point of conversation was the potential for allowing staking within crypto ETFs. Firms have been actively seeking SEC approval for this feature in recent months. Robert Mitchnick, BlackRock’s Head of Digital Assets, who attended the meeting, had previously spoken in March about the “complex challenges” involved in enabling staking for spot Ethereum ETFs, but noted it could be a “step change upward” if implemented.
The filing further detailed that BlackRock’s representatives and SEC staff discussed “considerations for facilitating ETPs with staking capabilities.” They also addressed parameters for establishing positions and exercise limits for options on crypto ETFs, including the necessary liquidity thresholds.
The meeting comes after the SEC greenlit options trading on several spot Ethereum ETFs last month, including those offered by BlackRock, Grayscale, and Bitwise. BlackRock also used the opportunity to discuss general standards for the approval of crypto ETFs.
The SEC’s crypto task force has been actively engaging with various stakeholders in recent months, signaling a shift in the agency’s approach to regulating the digital asset industry. This contrasts with the previous stance under former SEC Chair Gary Gensler, who had warned that crypto was “rife with fraud and manipulation.” During his tenure, the SEC initiated several cases against major crypto firms, many of which were subsequently dropped after his departure in January.
Under the new leadership of President Donald Trump’s appointee, Chair Paul Atkins, the SEC appears to be adopting a more supportive regulatory framework for crypto. Chair Atkins has expressed anticipation of “huge benefits” from digital assets and plans to collaborate with lawmakers on regulatory development. The crypto task force, led by Republican Commissioner Hester Peirce, is scheduled to hold its fourth roundtable on Monday to deliberate on tokenization.
