Jito Labs, one of the largest validators and block builders of the network #solana , has led the initiative to allow liquid staking tokens in exchange-traded products ETP and #etf . If #SEC gives the green light, this will be an important step for cryptocurrency to take its place in traditional finance, allowing investors to earn passive income and freely use such tokens in other operations.
The petition from Jito Labs was joined by Bitwise, Multicoin, VanEck, and the Solana Institute. All of them insist that the rules for exchange-traded funds include the use of liquid staking tokens (LST). Unlike regular SOL staking, this format provides holders not only with regular rewards but also a separate token that can be used within the ecosystem.
In the address to the SEC, it is proposed to consider this mechanism for eight applications that were submitted on June 13, 2025, in S-1 format.
Jito Labs calls for the expanded use of liquid staking tokens.
Currently, staking is only available in some ETPs, but in the future, the mechanism may be added to ETFs if the regulator approves new applications. While the SEC continues to investigate the legal side of staking in funds based on Ethereum and Solana, issuers are insisting on including different forms of staking and payouts in kind.
Jito Labs and partners believe that liquid staking tokens (LST) make capital use more efficient and carry almost no additional risks. According to them, ETP investors will benefit if they can work with this instrument.
So far, the SEC has not provided a separate clarification regarding LST for Solana or other networks; there are only general rules for networks with a proof-of-stake mechanism. LST can be regarded as an equivalent of direct staking, and companies are asking the regulator to consider this option for Solana and other blockchains.
Today, such tokens are most commonly used in the Ethereum and Solana networks. They help maintain the blockchain's security while allowing token holders to earn on assets that would otherwise just sit idle.
The first requests for staking appeared in 2024.
The first applications to launch ETFs and ETPs avoided the topic of staking, as they only concerned Bitcoin-based products. When funds based on Ethereum and then Solana later made it to registrars, the issue of staking became more relevant.
Initially, companies avoided this topic due to technical uncertainties, tax nuances, and concerns that a too-rapid transition of cryptocurrency innovations into the mainstream could deter investors.
Currently, over $7.8 billion is locked through liquid staking tokens in the Solana network. Most of these tokens are issued by validators or infrastructure projects, with JitoSOL being the leader among them.
One of the main risks of LST remains their relative volatility. With a price $SOL around $177.75, liquid staking tokens traded in a range from $200 to $220. For example, Jito Staked SOL (JITOSOL) was priced at $218.57, while the Marinade token rose to $235.06. Since such assets are often used in DeFi protocols, their price is formed by various mechanisms and can differ from the main coin.
There is currently no single standard for staking services, and the rules for each project are quite complex. The greatest threat to LST holders is 'slashing,' when due to validator errors, tokens can be partially or completely confiscated.
Due to this, LST issuers are competing to offer safer and more reliable solutions. Recently, Marinade Finance revised its list of validators, excluding some and relaunching staking for 340,000 SOL. The procedure is not fully transparent for traditional regulators, and the SEC still needs to figure out which risks to consider when reviewing such products.
