The U.S. SEC has requested public comments within 21 days on the proposal for the Canary Staked INJ ETF, marking an important step forward for the new staking product.
The U.S. Securities and Exchange Commission (SEC) has officially opened the public comment period on Canary's proposed Injective staked ETF, a positive signal for the emerging staking ETF trend in an increasingly open legal context.
According to a filing made on Monday, the SEC has requested stakeholders to submit comments on the Canary Staked INJ ETF within 21 days. The regulatory agency has up to 90 days to make a final decision on whether to approve this product.
Canary submitted a proposal for the staked INJ fund last month with the goal of tracking the underlying asset of the Injective blockchain. If approved, the ETF will be listed and traded on the Cboe BZX Exchange, opening new investment opportunities for institutional and retail investors.
In the filing dated August 11, the exchange made a strong argument that INJ's market capitalization of over $1.4 billion minimizes the "risk of manipulation." The continuous trading nature and geographical dispersion of INJ are said to make price manipulation difficult and costly.
"The INJ market is less sensitive to manipulation compared to the stock, bond, and commodity futures markets," the exchange representative asserted.
Staking ETF – a trend emerging in a favorable environment
This comment period occurs in the context of the second term of President Donald Trump's administration creating a more favorable legal environment for crypto assets. Many companies have competed to file for a series of crypto asset ETFs from Dogecoin to Solana, with staking ETFs becoming a new and potentially lucrative piece.
Last week, VanEck filed a proposal for the JitoSOL ETF to track the price of liquidity staking tokens. The Jito Foundation stated that this will be the "first spot Solana ETF fully backed by LST: JitoSOL from the Jito network."
The REX-Osprey Solana staking ETF has also integrated staking rewards through a partnership with JitoSOL announced in July, indicating increasing competition in this segment.
The SEC has provided clearer guidelines on staking in recent months. In May, the agency stated that most proof-of-stake features are not under regulatory authority, later clarifying that some liquid staking activities do not constitute securities.
Also on Monday, the SEC postponed its decision on the WisdomTree XRP Fund to October 24, a move seen as standard procedure. The SEC's delay does not affect the review process of other ETFs, including Canary's proposed staked Injective.
