SEC Postpones Decision on Ethereum ETF Staking Proposal

The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on Grayscale’s proposal to incorporate staking into its Ethereum ETF products. This move comes amid a transitional period at the agency, as it awaits the appointment of pro-crypto advocate Paul Atkins to the commission.

NYSE Arca, Inc. submitted the proposal on February 14, 2025, seeking to allow staking in the Grayscale Ethereum Trust ETF and Ethereum Mini Trust ETF. The SEC made the filing public on March 3, 2025. In accordance with the Securities Exchange Act of 1934, the commission must respond within 45 days of publication, though extensions can be granted. The deadline has now been extended from April 17 to June 1, 2025, to enable a more comprehensive evaluation.

Fox Business reporter Eleanor Terret also noted that the SEC is postponing decisions on in-kind creation and redemption models for spot Bitcoin and Ethereum ETFs proposed by WisdomTree and VanEck. These models would permit direct crypto transactions instead of relying solely on cash conversions—an approach previously required under former SEC Chair Gary Gensler.

Atkins' confirmation has been slowed by procedural steps, including presidential approval and a formal swearing-in, both expected soon. His addition to the commission may signal a regulatory shift, especially following criticism of Gensler’s enforcement-heavy stance, which many saw as a barrier to innovation and market stability.

Atkins is anticipated to advocate for more crypto-friendly policies, potentially opening the door to altcoin ETFs tied to assets such as XRP, Cardano, and Solana.

As of Monday, Ethereum (ETH), the second-largest cryptocurrency by market cap, is trading at $1,630—marking a 6% gain over the past week. Despite the uptick, ETH is still down 15% from its February-March lows below $1,380.

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